If you are tired of spending hundreds of dollars each birthday and Christmas on items that last a year or less, you might want to consider putting that money into an investment account for your children or grandchildren. Starting early with a Uniform Gift to Minors or Uniform Transfer to Minors account can get the young ones in your life off on a great financial foot.
Under these accounts, your name and the child’s will be listed, but the child will receive full control upon becoming an adult. The type of savings vehicle you pick will be based largely on your financial goal. Do you want to provide them money for a down payment on a house? Do you want to give them an early jump on retirement savings?
If you want the account to grow tax-free, there are products available. If you feel comfortable having exposure to the stock market, investing in a mutual fund could be right. Your agent can show you several financial planning choices that work with your goals for growth, risk and accessibility. In some cases, you can even use the investment as a learning tool for older teens and get them involved in contributions if they have an income.