How to Get a Grown Son to Invest for His Children
You spent years raising your son and now that he is grown up with children of his own, you still want what is financially best for him and his children. Helping a grown child realize the benefits of investing for his children can be challenging in any economy, but there are ways to assist in the investment by teaching by example.
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Instructions
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Purchase savings bonds for his children. Rather than giving your son's children presents or toys for birthdays and holidays, give the gift of a savings bond instead. A savings bond can be purchased at most banks and, according to Treasury Direct, a financial services website, a bond is "a low-risk, liquid savings product. While you own them they earn interest and protect you from inflation." A savings bond promotes long-term investment practices and will prepare his children for adult purchases, such as a college education or a home.
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Give a contribution to his childrens' college fund or savings account. According to College Invest, a college education is the best gift you can give your grandchild. Contributing to a child's savings account sets the example that planning for the future is important. Beyond making a direct contribution, College Invest also suggests using Upromise, "a service that can turn your everyday spending with hundreds of popular companies into money for college."
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Teach his children about the stock market. According to "A Good Investment" by Doris Keeler, some investment companies offer kid-friendly stocks. Tom Honeycutt, spokesman for the First Start Growth Fund, states "young shareholders will be at the forefront 20 to 30 years from now." Preparing children for future investments by helping them learn the stock market teaches money management skills and will instill the value of long-term investments.
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References
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