Here are the 5 best investments for children from different investing perspectives. Before making an investment, the investor needs to determine the goal of the money. Use the following information to choose the investment idea that works best for your child.
- Savings Account A simple savings account is still a good investment for children. Opening a savings account will allow a child to become accustomed to bank practices and will give them a leg up on many of their peers.
Precious Metals Tangible assets make one of the most interesting investments for children to own. A tangible asset such as gold and silver coins or bullion can be held in their hands, kept in their bedroom and even shown to other kids. Parents will need to monitor storage to protect against theft or loss.
Stocks for Kids Kid friendly stock investments can encourage financial literacy. A share or two of Disney, Sony (PlayStation) or other companies well known to kids might spark an early interest in the stock market.
Help With College College 529 plans will help with college and these are one of the best investments for children. State sponsored 529 plans are great investment vehicles for children to use to pay for college. These plans are tax advantaged and will be great to have when its time to go to college.
More Than Money Not all investments for children are of a financial nature. Don’t forget the importance of investing in a child’s future through life experiences and outside of the classroom education. A trip to Europe, a weekend in D.C. or a visit to a National Park might end up paying dividends of a higher value than cash.