Quote:
Originally Posted by m21sniper
For a kid a savings bond is a great investment, and a lesson in responsibility, economics, and savings...IMO.
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You mean because it teaches kids how not to invest money? Putting money at .7%for 30 years is foolish. Deferring taxes until you're in a higher bracket is foolish. His mutual fund he can follow day to day on-line or in the paper. He will see and learn about the ups and downs of the market. That will teach him about economics and making sure his fund is a good one will teach him about responsibility. His bonds would have sat in a safety deposit box for 30 years so I don't see that teaching him much of anything...other than how to get a bad rate of return and pay more taxes.