Saving $$ for Children?

[TWOPYRZ]

My child received $500 and I am unsure of the best way to "save" it. Any advice? Should I open a regular savings account at a bank? Purchase a savings bond? 529 Plan? Thanks in advance. :gvibes:

[rdhill007]

Most people think that I am nuts but my 11 year old already has an IRA. I put half of his Christmas money and Birthday money in it.

Your best bet is a 529 plan if you know for sure that your child is going to college. CD rates are starting to inch their way up too.

[core_17]

Sorry to piggy back your thread, but mind if I ask what a 529 plan is?

[terrismiles]

US Savings Bonds have good returns - just a thought for you. :)

[barb1210]

We set up 529 plans for both my girls, They both have savings accounts.. And DH has money taking out of his checks for Bonds.. he did some research and found out I bonds are at 6% So he had it switched from E bonds to I bonds this month..

[ksmith47]

We set up 529 plans for both my girls, They both have savings accounts.. And DH has money taking out of his checks for Bonds.. he did some research and found out I bonds are at 6% So he had it switched from E bonds to I bonds this month..

I agree I-bonds are a great idea right now. They are paying 6.73% right now. The interest rate will change in May in line with inflation.

[happysmileylady]

well, I think it depends really on what you want to save it for? Is it for school? For a "nest egg" to teach good saving and spending habits? To gift as a graduation present?

I think that your goal for the savings should determine how to save it.

[wottahuzzee]

I'd go with the savings bonds. some of the 529s have hefty fees.

[cesare1920]

I put all my sons money into his own ING account. It is earning about the same as a cd without all the hassle :)

http://home.ingdirect.com/

[TWOPYRZ]

Thanks everyone!

[Maddgiggler]

I would open a 529. They are awesome.

[core_17]

So...again I'll ask, what's a 529?

[ksmith47]

So...again I'll ask, what's a 529?


http://www.google.com/search?sourceid=navclient&ie=UTF-8&rls=GGLG,GGLG:2005-30,GGLG:en&q=529

Here are a bunch of links explaining how a 529 works. :gvibes:

[Kaelia7]

I have no idea how old your son is, but if he isn't going to be needing the money for a few years; maybe put some of it into a stock. Something that will interest him and maybe lure him into investing. For example if he likes computers, buy him some shares of Microsoft. Kind of an education thing. Put the rest into a money market account/high yield savings. I love my Capitol One savings account as it's very easy to transfer money in and out, but last I saw HSBC has the best interest rate at 4.80.