investing for children
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.