Stock for grandchildren

Terry Says

It’s a good idea to buy stock — but NOT to put it in a custodial account — if you think the family will apply for financial aid. In that case, money in a custodial account weights much more heavily against them in the aid formula. If they are loving the stock market and understand what you are doing, then use Stockpile.com to buy small amounts of shares to keep them interested. But for “big money gifts” us a 529 college savings plan, where the money will grow tax-free for college expenses in any state for any child in the family.