
Should I invest money for my child in a bank account or savings bonds?
I would like to invest $2000 per year to save for my child’s future. I thought about a college savings account, but what if he doesn’t go to college? Maybe a bank account or savings bonds? What would be the best decision?
Savings bonds are very safe. However, I instead would consider putting that money into high yield 1 year CDs and continually invest that money. I know banks are scary places right now, but the FDIC will ensure that money for up to 100000 dollars. However, talk to a financial adviser as well because if your child goes to college, that money will be computed as what can be contributed to their education, lowering how much financial aid that child can get. Maybe put that CD into your parents name and help your parents pay off the taxes that it would accumulate. If your child decides not to go to college, then that money could be theirs.
Good luck in your decisions.
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