I know it’s not a lot, but my grandfather is sending me a $1000 check for the birth of my son. I want to put the thousand away for him in an account that will maximize earnings for when he graduates college/early 20s. Does anyone have any recommendations of where I could put this?

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Werewolfdad t1_j6opg2w wrote on January 31, 2023 at 8:42 PM

#1,680,288

saving for kids: https://reddit.com/r/personalfinance/comments/104tjyn/_/j36u2dm/?context=1

LR_111 t1_j6oqrz9 wrote on January 31, 2023 at 8:50 PM

#1,680,803

Are you sure you want to do this? There are some priceless experiences that you can only have as a child / young teen. Wouldn't the money be best used now for a once in a lifetime experience vs when he graduates college, and likely gets a job where he makes that much in a week?

Gee thanks mom and dad, I finally get my first real paycheck for 2k+ and you give me another ~~$1200~~ 6000 dollars that is just lost in the sauce.

BouncyEgg t1_j6ory3d wrote on January 31, 2023 at 8:57 PM

#1,681,266

Replying to LR_111 (#1,680,803)

> you give me another $1200 dollars that is just lost in the sauce.

I would challenge this calculation.

The OP is looking at a time horizon of 20 years.

Properly invested, the value of 1K will likely far exceed 1.2K.

LR_111 t1_j6osppz wrote on January 31, 2023 at 9:02 PM

#1,681,537

Replying to BouncyEgg (#1,681,266)

Okay I will edit to 6k.

lilithONE t1_j6p9wx2 wrote on January 31, 2023 at 10:51 PM

#1,688,600

Open a high interest savings account and put all gift money there.

LR_111 t1_j6pffr6 wrote on January 31, 2023 at 11:27 PM

#1,691,281

Replying to lilithONE (#1,688,600)

Such a strange mindset to me. People give gift money to a child, and there you squirrel it all away for later when they are making money on their own?

Unless explicitly mentioned by the giver, I would use this money to enhance their childhood experience. Family trips, cool science projects, school clothes and supplies, etc...