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Investment Options For Kids

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Teaching children to save and invest money properly is a lesson that will secure their financial future. Since the day your child was born, you have probably been thinking about saving for their college education. Why not save for college and teach a lesson in financial security at the same time?

There are several different types of investment options available. It may be a good idea to sit down and speak with your children about the options you chose and why. It will be a lesson that will stick with them and help them to make sound financial decisions later in their lives.

Section 529 Plan

The section 529 plan is named for the section of tax code that created it. It is probably one of the most popular methods of saving for a child's college education. Parents can enjoy significant tax benefits while setting money as for their child's college fund.

Savings Bonds

Savings bonds are an excellent strategy to help secure your child's future. The good thing about savings bonds is that they continue to grow over a period of time and can be used in a variety of different ways. Even if your child decides to pursue other interests, and does not go to college, the money will still be available for their designated purpose.

Mutual Funds

Mutual funds are a collection of stocks and bonds that are managed by an investment company. Many companies offer special programs for children to purchase mutual funds. And the investment for these funds are fairly low which is a great option for kids.

Individual Stock

Investing in individual stock not only teachers your child about making money, it also teaches them about the value of money. Have them invest in stocks with companies they frequent regularly. Try their favorite restaurant or grocery store for starters.

Two goals is always better than one. And teaching your children to be financially independent along with saving for their future are the best investments that a parent could make.

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