When my son was born I started putting $5 (not much I know but I'm trying to do something) a week from my paychecks into a savings account for him. He's now 2 and between that and money he's received as gifts or anything else he's up to around $1000. The plan is that when he's 18 he'll hopefully have a decent junk of cash to do something with. Car, school books, etc. Hopefully I'll be able to contribute more towards this account in the future but for now it's $5 a week. What can I do with this money to help it grow a bit faster?
Stocks- higher risk than I'm comfortable with although 16 years is a long time if the money is put into an index fund or ETF. The problem with this though is the small deposits. Is there a way to buy fractions of an ETF? I know some stocks you can do this with but I haven't looked at ETFs.
Bonds- Low risk but also low return right now.
HYSA- This seems like probably the best option except that rates are garbage right now.
CDs- Kind of the same as above although maybe doing several 3 year CDs could get slightly better interest rates. by shopping around each time.
Is there something better or easier that I'm missing? This account will basically be a set it and forget it kind of account except for when it needs attention.
Submitted June 14, 2020 at 09:56PM by SomeDudeAtHome321 https://ift.tt/30TNmKf
