money

The Gift of Gift Cards

Do you have a loved one who you’re never quite sure what to get them for the holidays? If so, you may be considering gifting them a gift card, so that they can get something they truly want or need. There are two common gift cards that are sold at many retailers: Store cards – gift cards that can only be used at a specific store or merchant, and network-branded cards – gift cards that can be used with many different merchants and are usually issued by banks or large financial institutions. When purchasing gift cards, consider which type would be most beneficial to the person receiving the card.

Hands holding a wrapped gift card in front of a Christmas tree.

Most store gift cards and network-branded gift cards are covered by the Credit Card Accountability Responsibility and Disclosure (Credit CARD) Act. This means that your gift card cannot expire until at least 5 years after it was activated. The merchant or institution that issued the card also cannot charge any inactivity fees for at least one year if your loved one chooses to hang on to the card for a while.

A few other tips when buying gift cards:

  • Check the card before you buy it. Make sure it isn’t damaged and the PIN number on the back of the card hasn’t been revealed.
  • Buy gift cards from trusted stores and sites. Gift cards can be counterfeited or stolen, so do not buy from unfamiliar sources.
  • Give the receipt to the recipient of the gift card as well as the terms and conditions so they are aware of the fine print.

If this holiday season you or your children are given a gift card as a gift, remember to protect the gift card like it is cash. There is a good chance you will not get your money back if the gift card is accidentally lost or stolen. If the issuer offers it, you may be able to register your gift card so that you can better protect your money if the card is lost. 

For youth, gift cards can be a great way to teach about money management. Be sure to talk with your child about how and where they can use the card as well as how much money is on the card. Remind them to consider sales tax when purchasing an item. Encourage your child to complete the purchase from start to finish (it is their money, after all!). Have them bring their item to the register, pay for their item by handing the gift card to the cashier, and collect the receipt and item from the check out. This will help prepare children for making purchases on their own later in their lives.

Whether giving or receiving gift cards this holiday season, remember to keep your money safe for a happy shopping and gift-giving experience!

Written By:  Jessica Lowe, Family and Consumer Sciences Educator, Pickaway County, Ohio State University Extension, lowe.495@osu.edu

Reviewed By: Caitlin Mathews-Smith, Family and Consumer Sciences, Guernsey County, Ohio State University Extension, mathews-smith.1@osu.edu

 

Helping Kids Count Their Pennies

Kids are never too young to learn about money and finances. While preschool age kids (3–5-year-olds) are too young to understand concrete financial concepts, you can still set the foundation for financial literacy at this young age. One concept that young children can start to understand is that you need money to buy things and that you can earn money by working. Another concept is that sometimes we want things that cost more money than we have, so we need to save up to buy them. Around the theme of planning is that sometimes we need to plan ahead to have what we need. And a great one for around the holidays is that we have things that we want and that we need, and sometimes we must make choices about what we want and what we need.

Child with piggy bank

When it comes to talking about money, keep it simple. Short simple explanations or examples will help children start to grasp these concepts. Having conversations around these financial literacy themes as they come up in daily life will help young children start to understand these concepts. For example, when grocery shopping or buying something at the store, have a conversation about something you are buying that your family needs and something that your family might want. When my husband and I leave our house in the morning, we explain to our young children that we are going to work to earn money, a concept that they are beginning to understand. Having these ongoing real-world discussions and sharing examples in daily life can help bring these concepts to life.

Books with themes around money can also make an impact. The Consumer Finance Protection Bureau (CFPB) has a list of books that share themes around money like making decisions, spending, earning, sharing, borrowing, prioritizing, and setting goals. Many of these books also have guides that parents, grandparents, teachers or caregivers can use while reading the book to help encourage children to think about these money themes and spark discussion. Books like “A Bargain for Frances,” “Just Shopping with Mom,” and “How Much is That Doggie in the Window?” all have guides available for free to help in discussion. The CFPB also has other resources to facilitate talking about financial concepts to children of many ages.

Other activities can also help in understanding financial concepts. Activities like adding money to a piggy bank can help in conversation about earning and saving money. Role playing games like playing restaurant or ice cream shop can spark different roles and give life to concepts on buying and paying for food and services. There are also online games and apps around financial literacy for young children as well. One of my favorites for young children is Peter Pig’s Money Counter and many from U.S. Mint.

Talking about money and financial literacy topics at a young age can help children in the future with their decision making and critical thinking skills and can set them on a strong financial literacy foundation.

Written by: Katie Schlagheck, Family and Consumer Sciences Educator, OSU Extension, Ottawa & Sandusky Counties

Reviewed by: Jenny Lobb, Family and Consumer Sciences Educator, OSU Extension, Franklin County

Game of LIFE = Behavioral Economics aka Emotions & Money  

The board game called LIFE was originally created in 1860 by Milton Bradley. The game simulates a person’s travels through their life, from early adulthood to retirement, with college if necessary, jobs, marriage/companionship, and possible children along the way.

As we all travel the journey of life, we all make decisions to fill our needs and wants. Filling our needs and wants requires MONEY, and each decision has costs associated with fulfillment. We call this the opportunity cost of a decision. Each time we make a decision to spend or save MONEY. We also make a decision to NOT spend or save for something else.

Americans live and work in a market economy that demonstrate the six characteristics in the image below:

  1. Private property
  2. Freedom of choice
  3. Motive of self-interest
  4. Competition
  5. System of markets and price
  6. Limited government
characteristics of a market economy

Healthy Finances refer to a state of financial well-being.  A team of researchers assembled by the Consumer Financial Protection Bureau (CFPB) suggests financial well-being can be defined as a state of being where you: 

  1. Have control over day-to-day, month-to-month finances 
  1. Have the capacity to absorb a financial shock 
  1. Are on track to meet your financial goals 
  1. Have the financial freedom to make the choices that allow you to enjoy life.

Now is a good time to identify what your emotions are around money.

Use a notebook or journal to write about three money decisions you made within the past four weeks.  Next, go back and reread what you wrote and circle the words that describe the emotions you experienced in the decision-making process.   

Whatever the emotions, make space for them and acknowledge what they’re telling you. Make time to learn from them and decide which ones to let go as you move forward on life’s journey.

Author: Margaret Jenkins, Family and Consumer Sciences Educator, OSU Extension Clermont County

Reviewer: Mackenzie Mahon, 4-H and Family and Consumer Sciences Educator, OSU Extension Clermont County

References 

  1. Consumer Financial Protection Bureau (2014). Financial Literacy Annual Report. http://www.consumerfinance.gov/reports/financial-literacy-annual-report-2014/
  1.  Melnyk, B.M. & Neale, S. (2021). 9 dimensions of wellness: Evidence-based tactics for optimizing your health and well-being. The Ohio State University. https://wellness.osu.edu/sites/default/files/documents/2021/05/9%20Dimensions%20of%20Wellness%20Digital.pdf