Ask Terry Questions Saving for teen

Saving for teen

By Terry Savage on October 22, 2023 | Wild Card

Our son just had his bar mitzvah and received some generous gifts. We want to help him make his money grow and are debating the best options. He already has a Bright Start account (since birth) and it’s doing well. We were thinking of another account that he would be able to access in his late teens, post college time to help him when he wants to buy a car, a place to live after school. I suggested using a portion to buy some bonds.
Thanks so much, I enjoy catching your shows on WGN’s stream on Alexa while I work from home.

Terry Says

Thanks. The problem with a “custodial” account in his name is that it will weigh 7x more heavily against your family in the financial aid formula if you will be applying for Federal student loans so it should be spent during his junior year.

But if that isnt an issue, consider opening an investment account, where kids can buy fractional shares in companies they like.
My favorite place to do that is with Acorns Early because there is an educational component.

Use this link to learn more:

And congrats to all on the Bar Mitzvah.



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