What's the best way to save money for my 5 year old nephew?
538090
I would try a ESA. It's an education savings account that can be used for any educational purposes. Not just college.\nOr you cuold try a UTMA account. Uniform Transfer to Minors. An adult would be custodian on this account until the minor turns between 18-21 yrs old depending on the state of residence.
797910
Try one but limit you balance.  If you spend $500 a month on gas, food, entertainment, have one with that limit.  Pay it off monthly.  DO NOT RIDE BALANCES!  That is the biggest problem people have in controlling their spending.\n\nThis way you can reserve many items by having a CC.  But a debit can work also.  \n\nYou don't have to have a CC if you choose to live below you means.  It takes serious control not to overspend with one.  \n\nTry an experiment to prove it.  Pay for everything with a CC for one month, and then pay for everything with cash the next.  You will see how different it is charging vs seeing your money leave your hand.  Being debt free is a mindset.\n\nGood Luck!
591387
invest in a child. u cant go wrong
1109840
how about:  a savings bond... saying this is for his future..\n\nHow about a gift certificate... to a place that has baby stuff, like clothes or toys\n\nHow about a photo album... so they can start to put pictures of the kid.
1078769
1. Make a list of the things you need.\n2. Carry a limited amount of cash.  No credit cards!!\n3. Put a picture of something that means alot to you or something thatyou're saving up for, like on the fridge or IN the fridge or on the cover of your wallet.  Believe me, this works.  \n4. Put your extra money in a savings account that you can access only through the year. \n5. Take your extra stuff to a place that will give you money for stuff that's in good condition.  In South Carolina, it's called Plato's Closet. Or, take them to Goodwill or give them to a charity that shipps clothes and other stuff overseas to third-world countries.
615545
There's been some incredibly bad advice so far, so I will try to set the record straight and help you out.  Bonds are not a better long term investment for someone who has young kids or for someone who IS a young kid.  What bonds are, principally, is a safer, lower-yielding alternative to stocks.  What they SHOULD be, is part of anyone's, at any age's diversfied portfolio.\n\nSecondly, in no universe is Microsoft a big-dividend stock.  It has a yield of 1.56, which you might recognize as being less than your savings account.  Considering the S&P AVERAGE dividend is 1.8, that makes Microsoft a BELOW-average dividend stock.  Bad avice there as well.\n\nUGMAs and UTMAa are fine if you're okay with your kids buying a motorcycle or whatever else they want when they turn 18 (or 21, depending on your state).  They are in irrevocable gift to the minor, and they can spend it as they see fit.\n\nSome parents would rather keep some control over it, and put it towards college.  A 529 plan would be the best way to do this.  In addition to a wide variety of fund choices, if used towards post-secondary education, any and all proceeds are federally tax free, and in some cases, state tax free as well.\n\nBut how to invest?  What to buy?  You can start for as little as $100 a month at most firms, investing systematically, month after month, which is the smartest way to do it by the way, whether you have $100 or $100,000. Actually, I know at Edward Jones you can start with mutual funds for as little as $25 a month, and that counts for 529 plans as well.\n\nWhat to invest in? I'd suggest buying a diversified series of mutual funds. If you want to keep it simple, most 529s have age-based allocation funds that get more and more conservative as your child gets older.  If you want to get a little more actively involved, then make sure you hit all the asset classes, like Large cap stocks, small/mid cap stocks, international stocks, emerging markets stocks, government debt, corporate debt, hi-yield debt, foreign debt, emerging markets debt, real estate, commodities, and precious metals. That's 12 categories right there, and there are good mutual funds that allow you to invest in all of those.  Again, an asset-allocation portfolio could be a simpler way of accomplishing the same thing.\n\nThen sit back and rebalance each year, back to your original percentages. This is called asset allocation. The thinking being, what's BEEN hot is more than likely not going to STAY hot.  No one can predict what's goigto be big next, no matter how much they say they can.  Cause if they could, they wouldn't be saying, they'd just be doing it.\n\nThis sort of portfolio should average 8-12% per year, so just split the difference and say 10%. Will it do 10% EVERY year? Of course not. I'd be surprised if it ever did EXACTLY 10%. That's an annual average. With that average, your money should double roughly every 7 years.\n\nSo, if you start with $1000 and never add to it ever again, in 7 years you should have about $2,000\nin 14 years you should have about $4,000\nin 21 years you should have about $8,000\nin 28 years you should have about $16,000\nin 35 years you should have about $32,000\nin 42 years you should have about $64,000\nin 49 years you should have about $128,000\nin 56 years you should have about $256,000\nin 63 years you should have about $512,000\nin 70 years you should have about $1,024,000!\n\nA long time to wait to become a millionaire, impressive as that compounding is!\n\nOf course, if you keep adding money in systematically like I suggested earlier, say $100 a month, you'll become a millionaire MUCH sooner. The key is discipline, and sticking in when markets are up OR down. Don't try to time the market--you'll NEVER get it right.\n\nHere's a handy formula:\n\n$100/month x 12% return x 20 years = $100,000. \n\nSo if you want $500,000 20 years from now, just save $500 every month, and go with th
1106513
Go to Citibankonline.com  Check out the E-savings account.  It is the best for liquid money at 4.75%  And as rates go up, so will the rate.  Best for short term money.\n\nFor over a year, look at a floating rate mutual fund.  It buys shorterm corporate debt, and gets you about 5.35 to 6% interest.\n\nXLACX or Highland Floating Rate Advantage class C is the best choice.  Remember, you need to keep the money in the fund for 1 year, or their is a 1% penalty.
252767
If you have the cash I think the pre-paid account is a good deal.  I did the 5 year plan, but if I had it to do over again I would do the lump sum and get another year when I had enough for it.  The problem with the 5 year and extended payments is that the interest rate is 7.5 or 8%.  So I am paying mine off as quickly as possible.  \nI would get two or three years through the pre-paid plan and invest any extra money in a 529 plan and keep it in a pretty aggressive stock fund until the kid is in college.
952217
Bribery might help, give him something to look forward to at the end of each nine weeks and if he does well you could take him on a mini trip or buy him a game he wants. Some kids are motivated in diff ways so don't worry it might be something personal in his life like friends or girls, hope all goes well!
227945
get a 7/1 interest only ARM product. if you are planning on staying for 5 years, get the extra 2 year buffer. depending on your tax bracket, you may also want to buy down your interest rate. you can tax deduct it now and benifit by a lower payment.\n\ngood luck,\n\namir
13311
Here's something we're trying with our 15 year old to help him understand credit cards and money management.  \n\nHe has a Visa Buxx card, which is a prepaid, reloadable card that works like a credit card, but has a balance only you (the parent) can control.  The teen has access to account information on their balance and transactions.  They use it just like a credit card anywhere Visa is accepted.  They MUST be aware of what's available in their account or their purchase will be declined.  \n\nYou fund the card from a checking account or checking card.  The issuing bank charges you a setup fee and a small fee ($2)each time you add to the card.  We have a checking account with the bank that issues it and they actually waive that fee.  You can put as little or as much (up to $2000) as you want.  Minimum age to use a card is 13.  And there's no minimum balance or minimum time limit on it.\n\nFor us, it's a real simple way to give him an allowance AND responsibility for it.  For him, it's a way to spend AND budget his money, easily helping him save it for what he wants without tapping his real savings account.\n\nIf your kids are too young, or you think it's too soon, I'm sure the program will be around for a while.  But if you think it's something worth trying, here's a link from Visa to explain the program.
54865
There are a lot of factors that you need to consider.  Such as how do you want to save the money.  You can go with a reg. savings account, stocks, bonds, IRAs...  Also, if you put the money into a money MAKING account, you may have to pay taxes even if the account is in your childs name.
850648
Please keep your money in your own home town. Most of those that you see on TV only give a percentage of your money to some child somewhere. Something like 40%. I guarantee there is a hungry child right in your own neighborhood. Talk to a local Christian Church and they can help you "adopt" someone close to home.
746404
Nationwide Building Society has a fantastic Smart account for children. No penalties if you need to draw out of it and it can stay in your name until they are 18. The rates are going up tomorrow to close to 6%. Also there is the government child trust fund but you can only pay in £1200 per year to it if you have the voucher if your child was born after 2002.
6427
Well, since you saved 800.00 that you were planning to spend, you're 800.00 richer. This is not the time to get thrifty. I would suggest at least 200-300$. If you don't feel comfortable giving them cash, you can get them a gift card. If they are into home improvement, a Lowe's or Home Depot card would be appreciated. Plus they'll remember you if you need any more free/ reduced jobs done in the future.
855191
IRA's are only for wage earners, so unless your children have jobs, you can't open one.\n\nWhat you can do is open a broker account (Charles Schwab, Scott and Co., Merrill Lynch, and the like)for each child - Uniform Gift to Minors Account - and invest in high yield money market funds paying close to 8% versus CD's which pay 3-4%. You can make such contributions on a regular basis, or as circumstances permit. There is no set amount or timetable. \n\nThe earned dividends are not taxable to them until it amounts to $600 per year (check with the broker, I'm not sure of the amount.)\nAt age 18, the account belongs to the children and should be converted to their names.
903561
Buy a $1,000 Series I Savings Bond.  It's also one of the safest ways to invest.