As this year ends, the last piece of planning that I am thinking through for my boy’s future is saving and investments!
Basic Saving: A savings account for minors is pretty easy to set up if you already have a bank account setup. I’ve already linked his account to my account so I can monitor it. We’ve started to deposit money that has been gifted to our son AND one of us matches the gift each time. Having a basic account makes it easy to add money without hassle. It will also allow us to have a way for others to add money in lieu of material gifts!
Education Savings Plan: An education savings plan is another route that o have to research more into. I’ve been told that changes to the plan allow for the money to be used for K-12 school tuition in addition to college expenses, which adds a little flexibility in how the money can be used without penalties. Im sure we will set one up soon, because I want to make sure my son has financial support for his education.
Investments: This one I’m at a lost in trying to figure out. I hear of people in the past who purchased bonds for their kids but I have no idea if that’s something to consider or what? Should I think about real estate as investments for him? Stocks in toy companies or something? I have to explore this more in the new year!