Download the Schwab app from iTunes®Get the AppClose

Five Ways to Make Giving a Family Affair This Holiday Season

Key Points
  • Charitable giving is an important part of everyone's financial lives that even young kids can learn early on.

  • Giving as a family, whether money or time, can make your dollars and your energy go farther.

  • Encouraging kids to support causes they care about can be an excellent personal as well as financial lesson.

Dear Readers, 

I've been talking a lot about young people and financial education lately but there's one thing I haven't discussed recently that I think is an important part of everyone's financial lives: giving. Now with Thanksgiving just ahead and Giving Tuesday coming right after, I want to share some ideas on how to introduce your kids to the importance of philanthropy and get the whole family involved in giving this season.

To me, saving and giving go hand in hand. As you teach your kids to manage their money and save a certain percentage for their future goals, it's a natural extension to also encourage them to earmark some of their money for a charitable cause. And what better time than the holidays to focus on how to share our own good fortune?

Of course, giving isn't just about money; giving of your time can be just as valuable. Ultimately, charitable giving is about making a commitment to help others. This is a commitment I believe everyone can make—regardless of age or resources. And committing as a family can be even more powerful, making your dollars and energy go even farther.

Five ways to make giving a family affair

  1. Talk to your family about the causes you support and why—As with so much in financial education, introducing the idea of giving can start with a conversation about your own philanthropy. Talk to your kids about the organizations you support. Discuss with them how you make giving choices. Do you support some national causes? What local charities are on your list? How do you decide how much to give and how often do you make contributions?
  2. Let the kids research and choose an organization to support—Have your kids start by making a list of what's most important to them. Whether it's something like the environment, animal adoption, homelessness or hunger, help them do some online research. Encourage them to consider local charities as well as national organizations and think about where their donations could have the most impact. Depending on the age of your children, you could have them look at an independent online rating service such as charitynavigator.org or charitywatch.org. The ideal would be to pick a family charity that you'd all agree to support.
  3. Decide on a dollar amount each family member can give and make it a year-long family project—This is a great way to reinforce basic money management skills. Have the kids consider their sources of income, whether an allowance, gifts or a job, and decide what percentage they could put towards the family charity each month. Include your own commitment. Then decide how and where you'll set the money aside, ideally in an account that earns interest where you can all watch it add up. A quarterly family meeting to discuss—and celebrate—the growing balance can be a great motivation to keep going. You might also set a date when you'll make your group donation to the charity you've all chosen.
  4. Match your kids' donations to show your support—As an added encouragement, consider matching your children's donations. It doesn't have to be dollar for dollar (after all you're making your own contribution), but even a small addition to their donations will show how important you think this project is—and how proud you are of their efforts.
  5. Volunteer as a family—Chances are there are numerous organizations in your own community that would welcome the gift of time. From libraries to animal shelters to food banks, volunteers are often in short supply. What a wonderful opportunity for you to work together as a family and share in an experience that can be as enriching for all of you as it is helpful to those in need.

Encouraging kids to support causes they care about can be an excellent personal as well as financial lesson. It not only teaches them to manage their money wisely, it gives them a chance to reach out, connect, and contribute to a more equitable, more caring world. And that's something we all need, not only during the holiday season, but all year round.

 

Have a personal finance question? Email us at askcarrie@schwab.com. Carrie cannot respond to questions directly, but your topic may be considered for a future article. For Schwab account questions and general inquiries, contact Schwab.

What You Can Do Next

Midterm Elections: What Do They Mean for the Muni Bond Market?
How Do I Listen to Financial Decoder?
Financial Decoder
(1118-8CGD)

 

The information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager. 

Thumbs up / down votes are submitted voluntarily by readers and are not meant to suggest the future performance or suitability of any account type, product or service for any particular reader and may not be representative of the experience of other readers. When displayed, thumbs up / down vote counts represent whether people found the content helpful or not helpful and are not intended as a testimonial. Any written feedback or comments collected on this page will not be published. Charles Schwab & Co., Inc. may in its sole discretion re-set the vote count to zero, remove votes appearing to be generated by robots or scripts, or remove the modules used to collect feedback and votes.