Acorn accounts for grandkids
I heard you on WGN last night talking about the ACORN accounts for young people. Would I be able to start one of these for my grandsons, one is a junior and the other a sophomore in high school. The older one was earning some money last year dog sitting but neither has a job at this point with all the sports they’re into.
I’m not a big numbers person but something my deceased husband always complimented me on was starting my own Roth. At this point I am doing conversions and it’s a lot of taxes but then my kids won’t have to worry about them.
Terry Says
Sounds like you’re doing well. One thing to consider before opening any investment accounts for your grandchildren is the fact that custodial accounts in their names will weigh very heavily against the family in the financial aid formula when they file for student loans! So you might hold off for a while, and perhaps offer to gift some tuition.
I know that doesn’t teach them stock lessons — but if the family is filling out FAFSA (the Free Application for Federal Student Aid) in the next year or two, this could be important.
If financial aid isn’t a problem, you could gift them a few shares of a stock they choose by going to Stockpile.com — That’s perfect for teaching kids.
They can wait for Acorns until they are a bit older, working a job and need to learn how to save and invest.
