Best savings plan/account for grandkids?

[maslex]

I have four grandkids. Two grandsons age 10 and 3. And twin granddaughters that are also 3. I've always been the grandmother that would buy all the things for their birthdays, Easter, Christmas, etc. Clothes, games, toys, books, more toys. It's like my brain thinks that I'm the only one in the family who buys them stuff and if I don't buy it all, they'll have nothing. LOL Well, low and behold..............they have way too much! I'm to the point where I don't want to buy all the stuff anymore. I'd like to get them one thing that they really for their birthday/Christmas and then deposit money into an account for them, for when they get older. Should I get them a regular savings account or are their other accounts out there that would benefit them better in the future? Thanks!

 

[irlandaise]

That's a great idea, Grandma! Is your intention for the kids to have money they can spend however they like? Or would it be for a special purpose, such as education?

If the former, a savings account that they could deposit into and withdraw from when they're old enough (like the 10-year-old) to understand the concepts would be a great way for them to learn about handling money properly.

If the latter, check into tax-advantaged education savings accounts, such as 529s.

 

[TheOneWithTheTriplets]

Do you specifically want to maintain control of the money?

I ask because my father writes a check each year for each of the grandkids but he didn't establish accounts or anything. We deposit into the kids' savings accounts that we as the parents are the custodians on.

As they've gotten more money, we've balanced how much to leave in savings, invest in CDs, and invest in brokerage accounts, etc. We can see the full extent of their savings and adjust accordingly to generate good returns and pay attention to how various account types will be treated when the time comes to apply for financial aid for college.

 

[clh2]

Obviously, you should have a conversation with your children, to see what their preference is.

We do 529’s for our grandsons.