A new Christmas tradition
An alternative to toys and trinkets.
I didn’t buy Parker a Christmas gift this year.
To be frank, a part of me feels like a deadbeat dad for it. But I know that’s only because of my upbringing and social norms.
At an early age, I grew accustomed to Christmas being about gifts. Sure, church, community service and “Jesus is the reason for the season” were staples. But let’s be real. The holiday brought happiness because of the presents. When they piled high around the tree, Christmas was good. When gifts were low, so was the joy.
And so I was a little nervous when I poked my head inside Parker’s room Saturday afternoon to inform her Daddy didn’t get her a Christmas present this year. I didn’t want to disappoint. I feared I would ruin her Christmas. Instead, for the millionth time, she made my heart melt.
“It’s OK,” she said. “I do have a lot of Legos and toys already.”
And I’ve got a better plan. Instead of stuff, I’m buying Parker stock. Think of it as a holiday bonus, a gift that’ll keep giving through appreciation and dividends.
I’m already investing $336 each month into an index fund for Parker’s custodial account. Each year at Christmas, I’ll make an additional contribution as her gift. Some years it might be $100. Others could be $500. I’m betting on my ability to increase her bonus as the years go on.
This year’s bonus will be on the lower side. But in time, even a little extra toward her investment account will be worth so much more than another toy she’ll soon forget.
I don’t remember what I got Parker for Christmas last year or the year before that. It’s partly because I’m not a big gift-giver. But it’s also because Parker is blessed and highly favored. All of her needs are covered. Most of her wants are given to her throughout the year.
The girl just got a $700 iPad for her 10th birthday less than two weeks ago.
Still, I tried to replicate my childhood tradition. Only I’m a parent of one child rather than four like my mother. Presents never had to pile high around me and Parker’s tree. But in 2020, with loved ones chipping in, our living room floor was crawling with presents for Parker. And only after sitting through her methodically opening more than a dozen gifts did it begin to occur to me how ridiculous the mountain of presents was for one person.
I began scaling back in 2021. Last year, I did a little less after launching into financial literacy. Shortly after, I informed Parker I would start giving her stock instead of toys for Christmas. She never expressed sadness. I believe she gets it.
Christmas doesn’t have to be a time for excessive spending. Yet it’s annually one of Americans’ biggest money pitfalls. The commercialization of the holiday leaves millions stressed each year. It’s a holiday that, if you’re not careful, can lead you to spend more than you might have on stuff you probably don’t need.
Nearly three-quarters of Americans planned to use a credit card for their gift purchases this year, with the average charges being $680.
That’s almost exactly the price I paid for Parker’s 10th generation iPad, with accessories and insurance. I also put those charges on my credit card.
So I still believe in gifts, particularly the practical variety. Gifts are good. But equity is better.
Several websites, such as Stockpile and EarlyBird, make it easy for parents to open accounts for their children so that anyone can purchase stock shares as gifts for them.
I’m pretty fortunate that Parker, at such a young age, understands and appreciates my mission. She doesn’t mind sacrificing a few presents. It’s like she sees where all this is leading us more clearly than I do.
If your little one isn’t so understanding, try starting a new Christmas tradition anyway. Spend on the gifts. But scale back. Sock away a little something for them with an investment strategy.
In time, your little ones will thank you.
Merry Christmas.
Can’t get enough Money Talks?
Merry Christmas!
So my gift giving going forward will be experience based activities and wealth building contributions. I am going to follow your lead of doing what I can to increase our Family’s Generation Wealth
You will be pleased to know that during our Christmas Eve dinner last night, Martin, ( your youngest nephew / Parker’s 7 year 49 week old Cousin, walked up to me and said, “I haven’t forgotten about the Stocks and Bonds” -- a follow-up to my Black Friday explanation to him that I’m switching over to stocks instead of toys.
By Jove, I think he and Parker have got it and so does their Grandma Berta!!
I loved the article. I started a college fund for each child and was able to give the funds to them upon graduation from high school. Our last child is graduating in May and the article inspired my husband to add a nice amount to the fund. I believe that our savior came to deliver us from debt. It is so ironic to entangle ourselves in debt as we celebrate His birth.