Tired of battling hordes of shoppers for Tickle Me Elmo, the latest Xbox 360 game and other hot holiday items that feed your children’s rampant consumerism?

Eager for a present that gives your kids a financial jump on life and is still, well, fun? See what gifts can help your children learn how to save and spend wisely, with payoffs that last well beyond the season.

Alexander, Who Used to Be Rich Last Sunday
Price: $6.99 at most bookstores

Who it’s for: Four- to eight-year-olds

What it’s about: In this charming story by Judith Viorst, Alexander gets a gift of $1 from his grandparents. He has lofty plans to save the money for a big-ticket item but instead blows it all in the face of life’s temptations and regrets it.

Why it works: By age four, kids are old enough to grasp the basic concepts of saving and spending, but they’re not likely to sit still for a lecture on the topic.

“When children are engaged by a story and see a character’s life turn this way and that, they’ll learn by example,” says Margaret McKeown, a senior scientist at the Learning Research and Development Center at the University of Pittsburgh. Read More