financial gift for grandson
I have one child who is a 48-year-old single mother raising my seven-year-old grandson. We have saved $250. from his birthday and Christmas money and would like to start some investment me for him. When my daughter was young I would buy savings bonds for her along with bank savings that she could watch interest grow and gave them to her when she was 18 but I don't believe that is what is done. Neither of us can do anything monthly it is just extra money from gifts given to him. He was born four months early at 1lb 8 ozs and being raised by two not so young women that want to teach him to be smart with money and independent.
Terry Says
Well, he sure sounds like a survivor! I'll give you two different choices:
- You could buy him a few shares of stock when you have the money. Go to www.Stockpile.com and you'll see how easy it is. Just specify how much money and what company. They will hold the shares in an account. You'll want to name your adult child as custodian of the account. Later he can help pick stocks -- companies he knows, maybe Amazon, or McDonalds, etc. (warning: Don't build up too much money in this account over the years,as it weighs heavily against the family when it comes to financial aid for college.)
- Set up a 529 College Savings Plan, to which the parents -- and anyone else -- can also contribute. You probably need at least $1,000 to open an account. Add more at any time. The money grow tax-free for college. Learn more at www.SavingforCollege.com.
