Parents already know how important it is to get their kids interested in saving and investing. With so many ads out there urging kids to shop till they drop, it can be hard for the values of thrift to get through. Giving children and teenagers the gift of an investment is a great way to capture their interest, and savings bonds make a wonderful gift for any occasion.
One of the great things about savings bonds is that they can be purchased in denominations as low as $50, making them an affordable investment for kids of all ages. What’s more, savings bonds can earn interest for as long as 30 years, making them a true investment in the future.
Giving savings bonds as gifts is easy as well. Many banks are happy to sell Series EE and I bonds to their customers, and some banks will even provide a special gift box if the bonds are to be presented as a gift. Many brokerage firms, including online and discount brokerage firms, can also help their customers get the savings bonds they need – whether for themselves or to give as gifts.
Many successful investors have gotten their start by investing in savings bonds, either on their own or as the result of gifts from generous family members. Investing in savings bonds and other such investments is a great way to show children the magic of compound interest, and a great way to show them the value of delayed gratification.
Teaching kids to save and invest for a major purpose is more important than ever before. After all, kids who have grown up with an appreciation of money and the value of a dollar will be less likely to get in trouble with credit cards and debt down the road. With so many college students racking up thousands of dollars in debt it is vital for parents to raise money smart kids. Few schools take the time to teach a course on financial literacy, so these important lessons on savings and investments need to be taught in the home. Savings bonds and similar vehicles help to illustrate that lesson for future generations.
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