Comments on: Giving A Child The Gift Of Savings http://www.pfadvice.com/2005/12/08/giving-a-child-the-gift-of-savings/ Bridging the gap between saving money and investing Mon, 06 Oct 2008 18:29:16 +0000 http://wordpress.org/?v=2.6.1 By: Chrees http://www.pfadvice.com/2005/12/08/giving-a-child-the-gift-of-savings/#comment-247 Chrees Fri, 09 Dec 2005 05:33:41 +0000 http://www.pfadvice.com/2005/12/08/giving-a-child-the-gift-of-savings/#comment-247 One thing I think I will do for my children (once they are old enough) is to tell carve out a certain amount of my investment account for them. It will be theirs to do whatever they want, as long as it stays in the investment account. My plan is such that whatever amount of this carveout is theirs once they graduate from college will be transfered to them. Several thoughts on why this might be the way to go: the account is under my name so it will not count as their asset when calculating financial support; they will control those stocks or investments, so they will have investment experience in their teens; and I will control the transactions so I won't allow "cash it out so I can buy some XBox games" transactions. Hey, it might not work, but I think the more experience people have in the investment markets, the better off they will be in the long run. I guess instead of giving a child the gift of savings, it is teaching them how to save/invest. One thing I think I will do for my children (once they are old enough) is to tell carve out a certain amount of my investment account for them. It will be theirs to do whatever they want, as long as it stays in the investment account.

My plan is such that whatever amount of this carveout is theirs once they graduate from college will be transfered to them. Several thoughts on why this might be the way to go: the account is under my name so it will not count as their asset when calculating financial support; they will control those stocks or investments, so they will have investment experience in their teens; and I will control the transactions so I won’t allow “cash it out so I can buy some XBox games” transactions.

Hey, it might not work, but I think the more experience people have in the investment markets, the better off they will be in the long run. I guess instead of giving a child the gift of savings, it is teaching them how to save/invest.

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