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5 Financial Gifts to Give Your Children This Christmas Day

This time of year, buying gifts is a given. Getting your child something meaningful would make a long-term impact than the latest toy on the market. Instead of buying a toy that would entertain your child for perhaps a few months, get them something that will teach them good money habits and set them up for success in the future!

The best gift is of course financial literacy but it’s not something that can be wrapped in pretty paper or tied up with ribbon. Here’re a few suggestions on how to keep up with the spirit of Christmas while teaching them a thing or two about their finances.

Cold hard cash

It sounds a bit obvious and kind of uncreative but giving your children cash is also a chance to teach them about managing their money. For younger children, couple the cash with piggy banks. In fact, give them three – one for saving, one for spending and another one for charity. This encourages the children to think about how they want to use their money and also how to budget.

| Related: How much does it cost to raise a child in Singapore? |

Why not a wallet?

For kids who are a little older, maybe around 10 years old, give them a wallet in a colour or print they like to teach them about taking care of their own money. Emphasise how it needs to be kept in a safe place and also how to keep the various notes and coins tidy. This teaches children that money is valuable and it needs to be kept nicely, just like any of their other belongings.

Junior savings account

Additionally, if your child is a Singapore citizen, you should already have a Child Development Account (CDA) which is where your baby bonus is deposited. If you want to beef up your child’s CDA, deposit money into it to get the government match. That sounds good, right? Actually, the money in the CDA is only for child-related expenses such as childcare centres, kindergartens, special education schools, early intervention programs, and healthcare expenses. Merchants need to be Baby Bonus-approved as well if you want to pay using the CDA. When your child turns 13 years old, any remaining money in the CDA is transferred to the Post-Secondary Education Account which is for their secondary education.

In contrast, a kids’ savings account can be used for anything you wish for. As your children get older, set a limit of S$50 and every time your child accumulates S$50 in their wallet, time for a trip to the bank! Opening a kids’ savings account has benefits such as no minimum age, kid-related perks like discounts at certain merchants or even free insurance, and no fall below fee.

| See also: Financial literacy for kids: 5 ways to set your child up for financial success |

Start a education fund

Saving for your child’s university education sounds like a daunting task but you have about 18 years to do it right? That’s roughly 216 months so starting when your child is born would give you a headstart! If you’re risk averse, choose investments with risk-free returns which are usually not very high but pretty much guaranteed. These include Singapore government treasury bills, Singapore government bonds, Singapore Savings Bonds, or fixed deposits. Although their interest rates are not to be shouted about, it’s still higher than leaving it in a normal savings account. Besides, different banks would have different fixed deposit promotions which could give you higher returns if you fulfil certain requirements.

Plan a financial roadmap

Why not give them the gift of sound financial plans? You can work with a financial planner or head over to Gobear to create a roadmap to meet your child’s long-term financial goals. Start early and assess your child’s finances in areas that include budgeting, saving, taxes, investments, insurance and even retirement planning.

Look for financial planners with the Certified Financial Planner (CFP) certification to be safe. Here at Gobear, we always try our hardest to make it super simple for you to compare insurance plans and banking products to find the one that’s right for you. We are a registered insurance broker with the Monetary Authority of Singapore.


This Christmas, give the gift of good money habits to your children and keep the ball rolling into their adulthood. We’re sure they’ll appreciate it in the long run. Happy holidays and may the new year be kind to all of us!

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