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Cool Investments

There are a lot of ways to invest for your future. Do you want to learn how to save and watch your money grow? Do you want to plan for your education today to make it easier to succeed tomorrow?Do you want to take some of your savings and invest in growing companies to learn about the stock market?Or would you like to invest in America and watch your money grow through U.S. Savings Bonds for Kids?

No matter how young you start, the key to saving and investing is knowing what you want your money to do for you.The more you learn, the closer you will get to your goals.There are many special accounts and investments designed just for kids, offering many ways to save, invest, and plan for your education.


  • Youth Savings Accounts

    Many financial institutions offer special youth accounts for children to begin saving.Often these accounts require no minimum balance and charge no fees.So even if you only have a few dollars to start with, or can only add a little bit every week or month, you can still get started on the savings habit – and watch your money grow.

    PROJECT:Check around your community for banks and financial institutions that offer youth accounts or participate in a school savings program.Your parents can help.Be sure to ask about minimum balance requirements and any fees that may be charged to your account.If your school does not have a school savings program, ask your teacher or parents to learn about the school savings program at www.saveforamerica.org.It’s a great way to jumpstart the savings habit.

  • U.S. Savings Bond for Kids

    U.S. Savings Bonds are a great way to invest in America…and a great way to earn high interest on your savings. For as little as $25, kids can buy a U.S. Series EE Savings Bond and see their money double to $50 over the years.And U.S. Savings Bonds offer a special advantage to children saving for education. If the money you earn is used for your college tuition, the earned interest is tax-free, with some restrictions.

    PROJECT:Check out http://www.publicdebt.treas.gov/sav/savkids.htm for more information on U.S. Savings Bonds. Why are U.S. Savings Bonds for Kids considered a very safe way to save for the future?How does buying a Savings Bond help our country? Compare the interest rate you earn with bonds to the interest rate you can earn from a savings account.

    Your parents and teachers may be interested in holding a U.S. Savings Bonds for Kids event at your school.You can learn more at www.saveforamerica.org and www.savingsbonds.org.

  • 401Kidz Stock Program

    Once you’ve started the savings habit, you can look at putting some of your money to work for you in different kinds of investments. One of the most exciting and educational ways to invest is to invest in America’s companies through the 401Kidz Fractional Stock Program.Now kids can invest in real stock in real companies – without investing thousands of dollars.At 401Kidz, children and their parents can buy fractional shares of stock online.If you’re interested in computers and don’t have enough money to buy an entire share of Microsoft, you can buy part of a share or $20 of Microsoft.If you know about a popular new game, consider buying $35 of Mattel.Soft drinks? You can buy $10 of Coca-Cola. The important thing is not the number of shares you buy, but that you’re investing for your future.

    Plan carefully before investing in stocks. The advantage of investing in the stock market is that your investment can grow very quickly. But always keep in mind: stocks may go up…and they may go down. You’re betting that the company you’re investing in will be in a stronger position in the future. It is important that you research a company before investing. Stocks are not insured, and they are considered a higher risk investment than savings accounts, bonds and other investments. Remember, investing in stock rounds out your entire savings portfolio that should begin with a savings account, bonds or other low risk investments.

    PROJECT:Before you invest in stocks, make it a smart purchase. Learn as much as you can about a company and the stock market before you buy.You’ll see that the value of a stock goes up and down depending on information about the company and changes in the market.www.401Kidz.com has a lot of information about making smart stock trading decisions and the 401Kidz fractional stock program.


    Many children and their parents get in the savings habit together…especially when the goal is investing for the best education possible.There are many special programs that help children and parents team up to save for the future.If you and your parents are saving together, talk to them about these special opportunities.

  • Education IRA (Individual Retirement Account)

    Every year your parents can contribute up to $500 to an Educational IRA to help fund your college education. Because these contributions can be made throughout the year, your parents can help save as you save.And although no tax deduction is allowed for the contribution, the funds from your IRA can be withdrawn free of tax and penalties if used to pay for higher education at qualified colleges and institutions. This makes a big difference when you decide to go to college. There are many types of IRAs, and some involve higher degrees of risk than others. Your parents can ask their financial institution or broker if they offer Education IRAs.

  • State Treasurers Education Program/Credits

    Many states offer savings or credit programs to help parents and children save for higher education. Families make monthly payments into an account, or purchase credits that can be considered “pre-payment” for tuition at many of your state’s colleges and higher education institutions.Each state Education Program has different rules and regulations.Ask your parents to check with your state treasury department if there is a plan available that’s right for you.

  • Uniform Gift to Minors Account (UMGA)

    Parents can give their children gifts of up to $10,000 per year through deposits into a UMGA account, without paying taxes on the gift.As the investment grows, the income from the account is paid at the child’s tax rate, not the parents, so more of the money stays in the account. The rules and regulations for UMGA accounts are different based on the age of the child. Your parents should check with financial institutions in your community about how UGMAs can help your family invest together.

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