Investing Money for Children

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Investing money for children allows for more risk because of the length of time of the investment. Choose companies that have a good rate of return and long-time horizon for growth with help from an investment portfolio manager in this free video on investing and personal finance.

Part of the Video Series: Investing & Personal Finance Tips
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Video Transcript

Okay. Investing for children. Big thing for children is really the amount of risk they can take. When you put money aside for a child, you have the options of taking maybe a little bit more risk than you might take yourself, whether it be a mutual fund or stock or even a lower grade bond. You have that option, because they have a longer time horizon to invest. And that allows them to ride out some of these ups and downs in the market. So when you're investing for children, really consider what the length of time is going to be. I would assume, at the minimum, it's maybe college. It might be a house, something for one time when they want to buy a house in the future. It might be for their retirement. In which case, you really have a full array of items to look at. And really, I would recommend looking at good, well-managed companies, looking at investment products that are going to give a good rate of return and that do have a long time horizon on them. That would give you the best interest rate or return on your money in the long term that's possible.


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