Start Saving For Your Children Early
Within a couple of months when your child is born open a savings account for him or her if you can afford it. Some institutions have a minimum amount of money necessary for the initial deposit, usually $100 or less. Before opening the account obtain a social security number for your child, first. Use the child's SSN to open the account.
There are many gift occasions while growing up from birthdays to religious events, graduations, holidays, and others. Some gifts are clothes, toys, sports equipment, and other things including cash and checks. While the child is young, deposit as much of the cash and checks into the child's account, as you can afford. Let the deposits accumulate and earn interest.
If you are knowledgeable about investing in stocks and bonds, excellent! Otherwise you should attend adult education financial classes at a local high school or junior college. You should buy or borrow books by Suze Orman and others that your local librarian can recommend to you. Suze Orman has a website, television program, and travels the country to give speeches. Share age appropriate information with your children about family finances and investing occassionally.
Compare notes about investing your child's money with others who had or have children.
On the resource page on Suze Orman's website she has a suggestion to investigate that may safely increase the yield compared to that of your local bank for your child's account.
As the child grows older show the account to him or her and say this is for you when you graduate from high school. Discuss the need to save for college, a car, a first home, and everything else that costs a lot of money. When the child receives an allowance, a cash gift, earnings from a paper route or babysitting, or other part time job discuss how much should be budgeted to spend and how much should be saved. When the account statement is delivered, make it an event with the child.
If you invest for yourself in stock, bonds, and mutual funds and are pretty successful, then I would invest very conservatively for each child. If you are not a successful investor then I would do the best with insured savings or CD's from the local bank. A few shares in a well chosen DRIP or some short term STRIPS may be appropriate if everyone in the family is comfortable with them.
Some parents withdraw most of the money each year from the child's account. They use it for a new suit, or a winter coat, or an musical instrument, or summer camp. Don't do it, if you can afford not to. Let it be the long term savings for your child. Give each of your children a boost in life with some savings for things they will need as they mature into adulthood.
Some parents gamble with their children's money trying to turn a couple of thousand into a quarter of a million and almost all fail. The child will need the money starting around 18 years old as a college freshman. Regular deposits and interest over 18 plus years can grow to pay local tuition and even a new car.
The first lesson is to learn to save starting at a very young age. The second is to learn about finances and investing, which is as important for people today as breathing, getting enough exercise and eating properly. The third lesson is that all learning begin while a child is young and never ends.
There are many gift occasions while growing up from birthdays to religious events, graduations, holidays, and others. Some gifts are clothes, toys, sports equipment, and other things including cash and checks. While the child is young, deposit as much of the cash and checks into the child's account, as you can afford. Let the deposits accumulate and earn interest.
If you are knowledgeable about investing in stocks and bonds, excellent! Otherwise you should attend adult education financial classes at a local high school or junior college. You should buy or borrow books by Suze Orman and others that your local librarian can recommend to you. Suze Orman has a website, television program, and travels the country to give speeches. Share age appropriate information with your children about family finances and investing occassionally.
Compare notes about investing your child's money with others who had or have children.
On the resource page on Suze Orman's website she has a suggestion to investigate that may safely increase the yield compared to that of your local bank for your child's account.
As the child grows older show the account to him or her and say this is for you when you graduate from high school. Discuss the need to save for college, a car, a first home, and everything else that costs a lot of money. When the child receives an allowance, a cash gift, earnings from a paper route or babysitting, or other part time job discuss how much should be budgeted to spend and how much should be saved. When the account statement is delivered, make it an event with the child.
If you invest for yourself in stock, bonds, and mutual funds and are pretty successful, then I would invest very conservatively for each child. If you are not a successful investor then I would do the best with insured savings or CD's from the local bank. A few shares in a well chosen DRIP or some short term STRIPS may be appropriate if everyone in the family is comfortable with them.
Some parents withdraw most of the money each year from the child's account. They use it for a new suit, or a winter coat, or an musical instrument, or summer camp. Don't do it, if you can afford not to. Let it be the long term savings for your child. Give each of your children a boost in life with some savings for things they will need as they mature into adulthood.
Some parents gamble with their children's money trying to turn a couple of thousand into a quarter of a million and almost all fail. The child will need the money starting around 18 years old as a college freshman. Regular deposits and interest over 18 plus years can grow to pay local tuition and even a new car.
The first lesson is to learn to save starting at a very young age. The second is to learn about finances and investing, which is as important for people today as breathing, getting enough exercise and eating properly. The third lesson is that all learning begin while a child is young and never ends.
posted by God Bless America - Bob at 10:22 PM
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