Investing – and saving – are two of the most important things you can do for your grandchildren, especially as college tuition costs continue to climb. Fortunately, these investments don’t have to be big or complicated; there are plenty of ways that every grandparent can help without breaking the bank.
1. Stocks
You can use this as an opportunity to teach your grandkids about investing, the importance of thrift, or general money management skills. To get them interested in investing, consider creating a portfolio of stocks for kids, with companies they’ll likely recognize from their daily lives.
2. Exchange-Traded Funds (ETFs)
Exchange traded funds (ETF) have become increasingly popular over the last two decades. These act like mutual funds by holding an underlying, diversified portfolio of stocks, bonds, or other investments but trade openly on the stock market exchanges.
3. Mutual Funds
Mutual funds allow you to pool your money with that of other investors, which creates a larger collection of stocks, bonds and other investments. This is often referred to as a portfolio.
4. Savings Account
If you’ve already conquered the ability to save, be that family member who helps your grand kids learn about the importance of opening a savings account early and developing good money habits as early as possible.