Ask Terry Questions Investments for grandchildren

Investments for grandchildren

By Terry Savage on August 19, 2023 | Wild Card

My husband and I have 11 grandchildren
We would like to open some kind of account for them as a beneficiary
What would you suggest?
We have about 20,000 to divide maybe a little more

Terry Says

Interesting question. I would suggest opening 529 college savings accounts for each of them, but I suspect they are different ages, and different needs, and less than $2,000 isn’t much of a start if they are already teens.

Instead, could I suggest that you open an account at and buy 11 Series I bonds ($2,000 each bond) — naming each grandchild as a beneficiary on one bond. That means you will have to get their Social Security numbers from their parents.

Here are instructions:

There is another choice, depending on their ages and how involved you want to be in an investment process.
If they are over 13, you could open a Fidelity “Youth Account” — a no-fee place where they could invest in individual stocks that interest them.
Learn more at this link.

They can buy fractional shares of real stocks, so you could “seed” each account with $2,000 and let them learn (with parental or grand-parental supervision), of course!

Finally, if they are younger and you do want to open a 529 college savings plan for each, where the money grows tax-free for any college in any state, read this:



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