What is the best way to give a child money for investment? I wanted to buy savings bonds for my god daughter, but I just found out they aren’t purchased at the bank anymore and the ebonds are not purchased at half the price like the paper ones were…

Terry Says:  The world has changed.  Savings bonds are not only inconvenient, but they are a terrible investment!  (Not the old ones, but the ones you can purchase today.)   My two best investment choices for children are 529 College Savings Plans, where the money grows tax-free for college expenses, (learn more at www.savingforcollege.com), and actual gifts of shares of stock purchased at a very low cost through either Stockpile.com (which offers gift cards sold in stores or on their website, allowing kids to choose their own stock, minimum purchase $25) or Sharebuilder.com,   now a division of CapitalOne Investing, which also allows small purchases of stock at very low cost.

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