What are the Best Investments for Kids?

Teaching kids about money and letting them start investing as a minor should go a long way toward assuaging this concern. 

Best Investments for Kid

The Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA), also known as custodial accounts, allow you to put investments in a special account for a minor child or grandchild. 

1. Custodial Account

Best Investments for Kid

A 529 plan is a special tax-advantaged investment plan that lets families save for the current and future costs of schooling for a beneficiary. 

2. 529 Plans: 

Best Investments for Kid

An Individual Retirement Account, or IRA, is a tax-advantaged savings account where you keep investments such as stocks, ETFs, bonds and other asset types. These accounts typically start with young adults because they require the account owner to have earned income. 

3. Traditional and Roth IRA

Best Investments for Kid

These accounts also allow you to put money toward qualified education expenses of K-12 grade schooling in addition to college costs.

4. Coverdell Education Savings Account

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