Pass It On

Spring 2008

How to handle birthday and holiday gifts for grandchildren who already have a wealth of toys, clothes and gadgets? One client came up with a solution that is working well in her family.

She explains, “I wasn’t good at picking out the latest craze in toys or electronics, so I had resorted to giving money to each child. Now I give money with strings attached – and make it fun by wrapping a ribbon around the money and literally taping three strings to it. “I also include three envelopes, a piece of paper and a fun pen or pencil. Then together, we sit down and make a plan for how this money will be used.”

String #1 – One-fourth of the money must go to helping others.
“I have a strong commitment to philanthropy and hope my children and grandchildren will continue that. The grandchildren get to choose the charitable organization or cause they want to support. Now that they know what’s coming with each gift, the older ones usually have given thought to this ahead of time and choose a cause that has touched their lives in some way.”

String #2 – One-fourth of the money must be invested.
“I encourage them to buy stock in companies they will feel good about supporting. Again, they’ve learned to consider this ahead of time, and it’s amazing how the older ones will get on the Internet and research companies based on products they especially like. Over time, they are learning to ask questions about the company itself. I help with the stock purchase and when the certificate arrives, we make a big deal of going to the bank safe deposit box and adding it to a special folder that holds the child’s ‘portfolio’.”

String #3 – The remaining half of the money is for the grandchild to spend or save as he or she chooses.
“If a shopping trip is involved, I offer to be the chauffeur or for the older children – the quiet copilot – and we schedule an outing. The time I spend with my grandchildren as they make these decisions is priceless to me, and hopefully they are learning money management skills and values that will prove invaluable to them in years to come.”

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