I did this for my grandkids a couple of years ago. Considered the 529 route, but decided to just do a custodial account. It will be theirs once they become adults. My intent is to add money to it every few years. Not life changing money, but hoping to instill an investing mindset in them. 2 of my teenagers have already added some of their own money, and track their balances on their phones, so I am pleased.

For initial investment, I split the money between s&p500 and nvda. Intend to split the money between s&p500 and another stock for next deposit.

The 529 route has merit. Separately, I loaned my oldest grandkid enough money to pay for 1 year of college. 0% loan that he is paying back at $100/month. I have 9 grandkids. Yikes.

We could not find any low interest borrowing programs for college students. This is troubling. Maybe if the government assisted with this, then they wouldn't be in the loan forgiveness business.

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Posted by CharlesUFarley

Daphne, AL

Member since Jan 2022

256 posts

Posted on 5/16/24 at 9:33 am to KWL85

Do a 529 or some other kind of account that you like, but set up a small savings account and put a little money in it at Christmas every year and discuss it with them but don't let them spend it. Then, when they get old enough to earn income, do a match on whatever they put in there. You can do a "bonus" when it comes time to buy a car, but teach them to earn their own money and save. This is better than having a chunk of money that they never thought about until age 18, which probably just teaches them to buy lottery tickets.

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