What is a good financial gift I can give to my nieces and nephews instead of toys?

Question

My idea is to be able to give my nieces and nephews $50 for their birthday and $50 for Christmas each year for a total of $100 a year. I would like this to be in some kind of fund that I could add to on each occasion and they could not access it until maybe age 25. They have too many toys already and although I often get them educational items I just hate to continue to buy them junk which ends up with missing pieces, etc. The oldest one is 9 so if I contributed until age 25 then she would have $1,600 at that time. Although she wouldn't understand not getting a present now she would certainly be glad to have that kind of money to use later on. I have checked around a little bit and can't find a type of investment which meets my criteria. Anyone have any ideas?

Answer 1

If i were you,i  think you can choose a oil painting as an birthday gift to get your friends, it's very special and it also can remind them of you.The price is not very high.I have ever bought some in a company whose service is good.

Answer 2

hello - perhaps you can open a bank account in each of their names and using their ssn, when you get $500 in the account maybe buy a CD, or some other vehicle with a higher return rate than the savings account.  some of the on-line bank accounts have higher interest rates these days.  that way you earn interest on the money.

(BTW - this is what i have done for friends children as well, no more toys, but i do give books.)

good luck

Answer 3

I know I would have felt so cheated if this had been done when I was a kid. I understand it now, but gifts are given to make someone happy, not to do something that's good for them.

On the other hand, I do understand the good of this.

The safest investments are Treasury bills. You can even buy them online.

But I'm thinking you could make this more palatable for the kids by involving them up front. Maybe put half in T bills and let them invest the other half in stocks. There are stock programs that let you buy one share at a time. You could teach them the basics of investing, show them how to research a company, and let them pick the stocks. It's kind of exciting to own part of a company! Fun to buy stock in Mattel or Disney or McDonalds or a cool clothing company, or perhaps a "green" energy company. And they get a dose of reality when you explain why one of thesemight be better than another, and they learn a few things about business, too. There are programs where they can own one stock in one company and one in another, and so on.

Oh, and it gives you a chance to bond with them, too, as you explore this together.

Answer 4

In my day, these were called savings bonds.

Anything else generally requires an account (UGMA or UTMA).  

Answer 5

might i make a suggestion.

i pay my daughter $100 for each A and $25 for a B.

at 9 and younger, that doesn't quite apply yet.

how 'bout you institute such a policy, with lower amounts, and at the same time set up a 529 account for each, and divide anything left over evenly.

while they're young, only the money they get will be "real".

and you can tell them it's for clothes, and their mom will help them pick stuff out.