What are the Best Financial Gifts for Babies, Kids & Grandkids? 

Whether investing in a baby fund, matching contributions to a custodial Roth IRA for a kid with earned income, opening savings accounts, buying some stock in a custodial brokerage account, purchasing a savings bond or even savings bonds alternatives– you’ve got a number of financial gift options.

What is a Financial Gift?

Financial gifts are a popular way to provide support for children and grandchildren, as well as close friends or family members who live in different cities/states (or even countries).

Financial Gifts for Babies

Financial gifts for newborns can act as an immediate form of assistance through help paying bills or money to buy necessities that could make home life easier. It can also help for the long-term by setting up a 529 plan or buying some savings bonds to help pay for future tuition expenses.

Financial Gifts for Babies

Consider opening a Baby Fund through an account with a sign up bonus to jumpstart your baby fund savings opportunities. You can also open a money market account or even a certificate of deposit to earn interest on the baby fund dollars while waiting for the birth.

1. Baby Funds

Financial Gifts for Babies

You can use 529 plans to cover tuition for your child or grandchild at a private school and pay for books and supplies in college years later (up to $10,000 per year for elementary or secondary school tuition).

2. 529 Plans – Best Investment for New Baby

Financial Gifts for Babies

A classic form of financial gift, savings bonds are loans you make to the U.S. government. Popular with grandparents, these types of bonds differ from other bonds in that you can’t sell savings bonds to other investors in the market. Meaning, you can’t hold them in a brokerage account.

3. Savings Bonds for Babies and Kids

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