Its Better Than Cash (S4E3)

Thursday, January 4th

Give a gift that's better than flat cash. Donate to a college education or invest in your child, friend or family member. Kris and Sheri will give you the details. 

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Whole whole whole what is better as a holiday gifting cast. Well during a couple things better and Sherry lynch and Chris Carol that's according to talk about on this episode of her money the podcast. Her money is sponsored by Carol financial package. And thinly NASA with Carol Fannie and something whether you're saving for college red matching your retirement caring for aging parents are seeking a second opinion about your financial plan my teammates trusted inexperienced advisors can help you navigate through it out. To secure a financial dot com and click on the coffee cup to set up the complimentary consultation with one of our advisors are cost seven 45538006. Carol financial we believe that our clients' best interests is the only interest that matters. Curse or just remind everybody that few episodes back we talked to the founder of gift of college dot com oh yeah I love that commerce all my gosh circle. You've just got stuck comic is a gift cards it's available at Saddam retail locations like Toys 'R' Us an online bank gift of college dot com and you can buy many denomination. And what it is is it's a gift of. Cash into the recipients. 529 college savings where he it's great and I want to make sure they're that we talked we kicked off this episode by talking about this because. Chris is a huge fan of 529 plans oh yeah on other financial advisors don't talk about them because this Christmas. You don't pay turn mush and yeah but no there there are good advisors out there talking about I would say but but I do think their. They're pretty under utilized let's just say that not enough people talk about how about that. Why after we chatted with the founder of gift of college arms I've got a couple of d.s gift cards for between new babies and our family it's great. And I ask their parents some legs seriously do you want another stuffed elephant and one Z. Or some money for 520. I know I'm supposed to do this in the spring but my wife and I cleaned out that upstairs closet last weekend. She assumed it's usually rule of the old stuffed animals so not due to sidetracked but you know what happens if everybody gets a new baby a stuffed animal. What happens when there for. And they'll still play with like Warner two of the stuff they were malls but you have fifty of them and they're all in this top shelf for this closet my hallway so. Oh yeah my wife and I actually do though last week at. Check this south currents might ex husband's grandmother. Collect take care bears. Foods old wounds the older ones and when she died she left them to my ex husband. And when he became my ex husband he refused to take them from my house so I have seen with her additionally box set of care bears. Sitting and from a storage closet in my house and I I don't think they're worth anything they're not in the original packaging I just. Yeah marriage take care prayers have been better to have gift of college dot com for example absolutely so let's talk about in your opinion is there a difference between. On giving somebody cash setting aside like the idea of who's attacking to get cash. Let's set aside the idea of etiquette attacking this is third difference between a gift of cash persists a gift cards let's start there. It depends. So are gonna get all timing the release here is any great picture and this is it depends. They're here's the thing I actually I mean I. Like giving gift cards and giving gift cards personal ID chip because I don't need more junk kennel I think a lot of us don't need more junk. And if somebody gives me a gift card. That shares they actually know me. Sue someone who knows me would just give me an Amazon or Barnes & Noble gift card. So that's where I'm gonna use them that's your happy place Howard Howard books in the I'm OK with buying more books you've not have a bunch of books are Merck K with that. And round and I imply a lot of books are my Amazon when you know my armor Kendall. Also so. The loser people who know me would just give me those and I'm so happy just to get those because I know I'll use it I know it's useful. Some cash I think is kind of weird particularly to give to other people's children. And and let me tell you lives. We've talked on here before about teaching kids responsible money habits. These gifts of money. Sort of creates this windfall for children that a lot of times will cause them to spend frivolously beyond stupid stupid. And so I think that. You can unintentionally. Be sending bad messages to young people nom not talking about your sixteen year old nephew. I'm talking ruptured 910. Year old nephew your your six year old. Meese great theory even your daughter is someone else gives your daughter who is five years old just cash. You can if you give my daughter castle she wants to do was buy more makeup. Calm wind yes so giving giving something that has little more structure to it that's a gift card to be particular place or thing. You know again Amazon can buy anything you can probably buy something justice frivolous. But maybe you you can maybe you go and say well hey I know this kid likes video games maybe I'll give him 2.5 dollar GameStop. Carter or something I read that right my my son actually and that's exactly how much summed up by some of laudatory for a dark from James Scott via so. You know again he's gonna spend that money a little more frivolously but did it focus is it a little bit. Again I'm I'm not crazy about giving cash to kids under about. Fourteen or fifteen is right where I start to be coming from K with that. When when you're little did she give birthday cards from your mean mall. It had Blake slots for dimes and mean mall would would Scotch tape played ten dives into the birthday card OK I'm going to say this because my. Current personnel listen Lucia. My birth through six weeks ago that I did receive a check for 25 dollars for cellular. Lol how long sued personally I have. I want you to have some money to spend anywhere you in my. And Sarah I have about the last ten years of these sex in my closet actual cash stone or cast. Castro so keep the so does that mean I mean mine's not balancing her checking account now there's no judgment there are just really how I'm pretty sure she knows I struck the little guy is so absolutely no lose really sweet but she is she always sins are in the nicest cards in the cards what I want I'll bring him I don't care what the hell. So cute here you are your grown man you have your own company's your own family and mean laws in her kitchen going I wanna give my Chris 25 dollars is so he series three of her. So it but there anyway it's. This is your laggards. Tiger little revolution let's talk about what I do think what what they do think he can give our league giving them little collectibles some people that are close to. And a collectible coin which is money I think that's kind of cool. You don't have to people forget this you don't have to do spend tons of dollar tons of money to get some cool little cooler read something you know you can do get. A twenty dollar corner thirty. I CI a little kids especially being really fascinated with nice to see my son and daughter birth really love points. Because every. Holiday I usually get them some point and it's not anything extravagant I think I got my. I got my son Tony dollar who loved. Different president dollars you know so it's just a dollar they're just as tolerant corn vertigo and Tony different presidents. I think there was storing different model than fifteen or something so you like went through and I was. We got to talk about the different presidents were you like actually thought I was a really cool guy so it has emotional value and financial value add I think you know I think that kind of gift is really nice I think gift cards are great I think. You know what what I really want people to give away from a spending too much money on stuff that she's gonna turn into clutter in the crowd. And you get fat frantic feeling especially if you wait till the last minute one of one of the things that on. We were talking about on my regular radio show not too long ago about Black Friday was. PE stand in line you're the doors open at midnight you so amp that you're ready to assault someone to save ten bucks on a toast around him. And you walk out of there with arm loads of stuff. Did does that do you really want another acrylic throw blanket with an NFL logo on it really does anybody really need that. If you women thinking that you needed to buy a new vacuum cleaner and he legitimately. We're gonna get this great deal on and yeah. I'm cleaner and save fifty bucks and yet you got. To order are for some other random stuff that just because it was such a good deal. He couldn't turn away all look at some lemonade pitcher with a stick it. You know that's kind of what I mean we all have closets full of this stuff phrase actually just about gift carts I read a statistic wants time that you seem to not all that long ago. Dead dollar amount of on net. Re deemed it give communities and in this country we make your I mean amazing. Rates it's it's summer day and that's why. That's why everybody should still hear jet outrage is because they know that are pretty high percentage of them never you used. Together numbers staggering but here's what I would tell you organize them. Yeah have your wallet with you is that the holidays and and keeps them in your wallet keep them organized I think and I know that in my failing several people have thrown out. Gift cards. Oh in the process you know your yeah wrapping paper and just a gathering spot they got together and scoop come to your doctor or. Here's a question I wanted to ask you about gift cards what's your opinion of flicked a Visa Mastercard Amex gift cards that cost six or seven dollars. Now to eat the card itself does like 695. And then you and then there's whatever money you put on. Graham not a big fans are so here's my issue the only thing you're doing when you do that is saying that the person has spend money on something legitimate. Right yeah it's hard to buy crack on your media and campaign donor and the MasterCard so your forcing them to buy something legitimate but they can still buy anything. Right anger is paying. Seven dollars. Vs privilege is the privilege of that episode to meet if if I was gonna put fifty dollars on one of those things I would just give them fifty dollars I think that's a huge waste right. Now I do know some parents. Who use a card like that would divide those little card for you can you can pre W yeah dumb right that's different OK so. That's a different thing if you're gonna pre little ongoing basis that's different Brewster our eyes a birthday or Chris Collins and a box of some note don't do that that's that should assume. I seven this conversation with someone and they say she's a visa anywhere I'm like you know you'd be surprised I think you compile lies still on Amazon now only Q early maybe don't need. Something that you keys everywhere since she can buy pretty much anything now. And an Site you're not a fan of the carts to carry the C. How personal number again you know I I think did the risk is. How has the child. As as the young person already learned responsible. Me and money management and virtually nobody under fourteen or fifteen past. Learn to responsive responsible money management soon you give them pure cash or something that is just like pure cash. You may be kind of interfering with. That process process. A particularly when it's large amounts when your large families and effort really gives you ten books between books. And then you either like oh look I have a 130 dollars and Christmas money let's go to the mall. That's exactly right then and you know or with you know again my so it's pretty good because he's a natural saver and he's had me kind of beauty school news of the news that is a life but I still wouldn't want him to get 20050. Dollars from random people in cash. From Christmas and just oh gosh look at all the money because he still has that little part of of this dislike it's almost like Scrooge but don't yet know. My jewelry designer I. I'm I'm going through an interesting is teaching financial literacy responsibility moment in my own family now my older daughter has a job she works and had learned Sanderson tutor. And she baby sits and by the way babysitting now is more lucrative than being a cardiologist should. Can I ask who she charges to babysitting I just curious does I don't know what the going rates anymore. Because of the people who sit my kids are fairway so so don't pay them on she magazine she gets paid anywhere from twelve to fifteen dollars an hour. Yeah yeah which is less money after they pay malpractice insurance and the guy that did your parents or her eyes she makes Hussein says she has her regular paycheck where she got her first taste of taxes right that was a bitter pill. And then she has her babysitting money to augment that. And we reopened the bank account she is an ATM cards so I mean my daughter and the personal banker in the office and the personal banker says. To me and would you like to have. Over drafts on the Coca Olivia single count. And Olivia looked to me she didn't know without one yeah and I said absolutely not I am why don't you explain what overdraft is so Lydia. As so the banker said overdraft is when you run out of money your account. We let you keep spending and then it's like a credit card loan. And and Christian mom would be responsible for that my civil know your mom will not responsible for let us remember overdraft and we talked about it on the right home I was like Olivia. He will never learn to manage your money he. If you have that kind of mommy's dot com safety net that don't yet know my way safety net when you're out of money. That you're out of money. And she immediately like all kids at their first job was like I'll be paying for everything myself now and I was sure you betcha I'm gonna buy my own clothes and I'm gonna pay for my new blue Burnham gonna pay I have heard FF FF skinned you mean couple days ago christened said. I spend a lot of money on food and rumor Mikey I know that's climates get a job. If so what. I've forced by not allowing over draft by forcing her to live within her means here and sushi you need to eat eat did you run short on money better. Picabo babysitting job. She's getting a crash course senate. And I think that what you're saying about. Because we have relatives that are scattered far away and they would all send money for Christmas and birthdays. I think she really had to distorted idea of how far fifty dollar scotus right. Fifty dollars doesn't go very far at all now. Right it'll buy you a lot of sharp. And yes it was right after Christmas right it will. But it won't buy you that many meals. Or very many Hoover right or very near her yet that's exactly right hand so you're share knobs on. Give them a gift card for something you know they're gonna use more eat or Wear. What this idea of the gift of experiences. Verses cash or commodity I love it but. It realized that the person that you're giving it your best to be armed form factor I think to I I love that idea because again I just hate to clutter and meaningless missed some more jobs Kraft Canada. So I'm sure you what are the things my out my sister in law I think this is a couple years ago. Her. Personal was maybe ninety your Tony and she gave him skydiving lessons. That's a Greek. Phrase for me that would be a night well I'm never doing it you really. Third one area myself. But it's a really cool hey and she was gonna do with the call all their nose into it. That's a really cool gift I don't wanna do it from I don't know much coming out of a perfectly good play there's no way that's happening right. But but I think something like that's really cool would you can say hey what do you admire going to do this together I used actually every year you see your mom mom mom mom mom and I would to keep cooking class together. And that was fine news that would be our group we would go to I would give a gift card. I sure I would just signed up a Johnson and Wales or pay for the Johnson and Wales thing schedule it. And then wrap up a little received with a picture of the description of what the cooking class in humans could do that you can either expose her to eat together we did probably four or five different I think are gave it to Christmas and a couple of those for birthday. I think that's a great talent. And I she loved it because she was getting to spend time with so absolutely and some food and and want something that I think that's something like that this is actors that you can do together is awesome. Well let's talk about spouses because some some as partners whether you're married or not some partners. Christmas is a big deal and you lavish each other with Gibson and other times it's like let's just you know most go to dinner and spend money on the kids are. Let's just give each other something small. But when I had this conversation he's like if you're woman tells you she doesn't one can for Christmas you better go shopping because you can't have the holiday calm and not have a gift how do you and your wife Madison. It's okay well first thing they'll understand this might care river tree this Christmas Eve. Oh so he had the sparse high so so I've got hit. It versioning Kirsten sort of simultaneously. Now what my wife and I have done their retirements we have we've done gone through the entire cycle. And by that I mean we're we're here for shoring up rural poor. We probably give each other unit Warner two gifts each. And we went through a period of time where was like after we got my wife. Ten presence in GI mean Tim presents. We kind of realized I was ridiculous. You know if so where are you serve so now we've got this happy medium and you have to realize that I have to your Christmas Croats are gonna go to an anniversary dinner with each other. One gift there. We're gonna have Christmas with the kids in the morning one gift. Of Christmas with her -- morning. Later how how one gift there Christmas with my parents who are born gift there. So I end up having your life five things between one anniversary you have to like for Christmas guest. But only one of them will be like the main too late to the other aliens will be yeah pretty small. And I think that's too hunched my wife thinks that's too much we both come. Well kinda wherever that is kind of where it is just because we we've different families were doing different Christmas is with the red. It just it's seems weird if we don't have something for each other. Every year I try to persuade my extended family let's. Let's not have an exchange of cluttered home let some either draw names or let's all agree to meet at. At a destination in Lincoln let's all meet in Baltimore and have a weekend together anything please god anything but. Mora crab stuffed cash and every year I failed miserably at that I've tried. I've I've spent many years giving my relatives. Goats and cows and the Third World yup click I've actually just doesn't get up so that what you have. I think it's the coolest thing ever they look a little this you only energy how. I mean my mum spam in my almost one of four children. All of which have children and so when we argued together it's a big cluster it's all sorts of people. And so we started treating names a long time ago but then as everybody serve having more kids they decided that everybody would get the kids presents ha ha ha yeah we would not give each other presents anymore. Well I have two kids so that means I get a leg. Sixteen things to take home you know are likely and different people are getting one gift for each of my kids so I don't want all that stuff let's don't and it just turns into this this. This in saying. Group. Kids throwing stuff everywhere going crazy everywhere and and it's even worse now because I'm too old to be considered a kid anymore right even though I have. Not the first cousin who Giroux my daughter shuttle first cousin whose three. So you're not getting any Legos and I'm so like I'm sure he's not exactly the problem so I'm too old to get. Did you guess what my kids gave gifts I'm not I'm the way oldest. Cute kid my cousins. So so let me get your opinion and this is not and I'm not not being paid to endorse that some just a fan of the world vision and dot org the world vision. They have a catalog that they put out every holiday season. And you can. Purchase. A goat fur of alleged or cow so I think for a he's one thing's for aside it's just extraordinary. And I've worked in the field with world vision so I love this organization and I know firsthand that there really really. They really I'll walk the walk you can look at on Charity Navigator dot org and see the percentage of what you give to world vision and how much of its deployed in the field. So I'm a fan of world vision personally. How do you feel about the sort of gifts that are also charitable. Foundation and. Here it is here's the thing I think it depends on the charity I am in big believer. When it comes just charity of of thirst. Three premises. When it comes to charity. One. If you're going to be involved immaturity. Commit to it. Meaning. Too too little bit of a whole bunch of stuff. Yeah true trust here about the piece she gave pediatric diffuse that you actually really care about and commit to really caring about them and then so that's number one. Number two. Make sure what you do is meaningful. From what and again I'm gonna go back and say. Oh well I've got. These five charities that I like that this will not only give them 25 dollars wounded the 2.5 dollars do any thing. Now we'll satirical vision you and I think I give a donkey. That was meaningful to somebody yell at them two of VMware for villagers something that was. That may be difference okay giving the gift just two minutes of a tutor time. To some intercity schools somewhere that probably didn't do anything ranked murdering your your ten dollars to matter okay. Not to be mean it's great to people that people have that charitable gift but to. I'm better and it may be put all of your charity eggs and do it if you wanna cheese basket trichet after not someone who can forward. To do you know our start Robertson maybe a 45 juries that you care about can really get involved and who maybe can't really afford to bring meaningful contributions to for fox. This may be dialed in really means it's only one or maybe it's only two. Number three so resolute the first shoot things number three do your research on your charity. And the look at sites like charity Norton navigator dot charity navigators are gray one but. At every charity anyone who has 501 C three that's the tax through that makes it non profit non profit and tax deductible to give the money. They have to file a lot of information 501 C three Tet status and it's all public information. So you can you can trust and website. Today to basically take that David and they're French or corn chips for you. And greed people are meant. But pay attention to what pitcher he actually goes through your mind and move them out kind of bad talking very that there are some very large charitable organizations and our girl. Cheryl do you look for its schedule and Asia hair boy mud managing the money that they bring him and so Lou and you know do the research does in my tooth my three things. One is pick something you knew wanna cure route and commit to. To make it meaningful. And and three do your receiver researchers have. All of those three things together before you start giving money sought tell you that my wife was one of those people who wouldn't somebody asked for. A 25 dollar donation for this or fifty yarder an issue that she should just say coming just everything. OK and I walked her through this process a set harming the sun and a war I want one because some. Financial personal attacks seduction. And guess what when you give Torre five function ever remember and save the receipts and Rihanna just yeah so you know numbing views than a hundred. Figure you'll letter her seatbelt that maybe yeah spend so I set our marks are sort of looked so we're gonna do you got to be more meaningful we have been more thoughtful about over toward. And since then it's it's really changed ocelot I think for the better so when. I'll tell you little story I don't think I've told this on the air before but I had my son give his first charitable contribution. He had saved up a couple hundred dollars over the course of maybe you're your behalf and so we gave Tony seven dollars. Now that's not a meaningful that violates my number to give up for him it's a huge percentage of his scourge in the dock for us exactly Iraq for my son and it was it it was enough money that he felt yeah and I wanted to uses a learning experience so we. We researched what charities we can give it to. And he picked the Bill & Melinda Gates Foundation. He may you know we. He paid me and we wrote to check her arm and then he filled out the envelope and submit and I think all and all was a great experience for him to get started in May be down were rushing kind of moved him into those three pillars of of making sure it's a meaningful but you know here's the thing. That the gates foundation. We choose from are great charity is really all about children. And children all over the world so it's perfect for so for her here a child it's it speaks to us so if you read about the kinds of things they do. It's met better medicine for children it's better education for children all the pictures which. You know that I ask you know and so early this relatable yet and is it something to resonate in any even remembered their little tap. Tag phrase which is helping children survive and thrive. Right he remembered got a week later. Freight which I thought this huge problems. Could we can do yeah and I mean you didn't immediately forget it. So I'm you know all of that is to say we started the soft same what do you think you are giving charitable things for preferred gift. And I think he's asking Q charitable things as a gift to somebody else. But it needs to be meaningful to them and not just says you yeah that's where I was trying to get judge yeah we hope to do it there but it needs to be meaningful to them because that's what makes a big gift not just meaningful to you know if you know somebody well you can pick something that will be meaningful to them. You know so I could've. I could have picked that for my sought. Is going to be at their whole goal was to have him pick that right but yet but I could totally now that he has picked it I can go back and give some money. To that on video on his on his behalf. For Christmas and say hey buddy you know I knew you didn't need a whole bunch more stuff you only ask for two things for Christmas. So so I did yeah here's those two things you Gramm. What I did was I took. All the what everybody else gave you. And I know you would love to pile that your money bond strategy should go what I do you know I've put total took all what everybody else gave you know you've 150 dollars to charity. And and prove him our little thing about it she that's a cool now that's still lady Laura yeah that's an iron I'm now he's down he's. A charitably inclined. Well look this weekend marked with four different strategies for holiday gifts none of which required batteries none of which I could ever do your house starting with gift of college dot com which is the gift of education and gift cards snack cash to places that you know with the person receiving and is gonna love. The gift of experiences. And how to. Make a charitable contribution into a gift that fits. That's pretty good to wrap up for our holiday episode of them no more giant plastic trucks. Please enough stuff to settle more cool bells and can I just say. My girl only Scott the one set of lips she needs no more lip gloss and another rough trip cost openness afford kiosk. That doesn't for this episode of her money wishing you how every celebrate the holidays Christmas Kwanzaa high mega fest of this. How what is this solstice however you celebrated. Pushing you the most happiness and fiscally sound kind of holiday yeah happy holidays and happy new year. If you want more information about what we talked on today's show or if you just how much other questions about money. This is our website at www. Carol financial dot com. Or you can only should mean email whether it's through the podcast or through my website I'd be happy to help if I can't. Good money is sponsored by Carol financial. Hi I'm thinly Nestle with Carol financial whether you're saving for college bag matching your retirement caring for aging parents are seeking a second opinion about your financial plan. Our team that's trusted inexperienced advisors can help you navigate through I don't. This to Carol financial dot com and click on the coffee cups to set up a complimentary consultations with one of our advisors are come seven F 45538006. Carol financial legally that our clients' best interests is the only interest that matters. Her weight my guess is just a tiny Sherry lynch and meet Chris Carroll. Our executive producers are no trial broke and Carrollton to our producers have their fur and our technical director and editor is Billy black special thanks Emily Nestle and Marion Edwards extra insulation from this episode or to listen other episodes and subscribe to this podcast to visit. Her money podcast dot com. Herman podcasts is now on Twitter follow us tweet us at her money podcast email us your questions asked questions at her money podcast dot com. You can even use your phone's voice memo out to record your question and email it to questions at her money podcast dot com and listen we might even played on the shelf. The permanent podcasts production of inner calm Charlotte and kill financial. Securities offered through security advisor networks LLC member finreg SIPC advisory services offered through Carol financial associates Angel registered investment advisor Carol financial it's a teary advisor networks are not affiliated.