Comments on: The Ups and Downs of Giving Savings Bonds as Gifts http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/ Financial talk for the rest of us Sat, 16 Feb 2013 01:14:45 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: Mitch http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-655431 Mitch Thu, 07 May 2009 19:29:39 +0000 http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-655431 I have always enjoyed saving money and learning about saving and investing, but I always hated the savings bonds that I got as prizes for winning essay contests and other things.

Here is why:
1. The value listed on the piece of paper was the amount it would be worth in 30 years, NOT now. A total setup for disappointment.

2. The $25 they spent on the bond would have meant a LOT to me in high school, but by the time they reached face value I was making over $100k a year and $50 was what I’d blow on dinner without even blinking an eye. I cashed them in not because I needed the money, but because I was annoyed by having to keep track of the pieces of paper.

3. It’s easy to lose that piece of paper, especially during the years you’re talking about. You don’t have a safe or something similar to put papers like that away in when you are 10 or 12 or even 24 years old.

4. Taxes. Some of the bonds I got for essays and the like were taxable. If I’d cashed them in as a kid when I really could have used the money I wouldn’t have paid any taxes. Having cashed them in when I was an adult and married to someone else also making good money, I paid heavily.

My recommendation is giving cash or a gift card. If you REALLY like the kid, give then that then go shopping with them and help them learn to spend well, think about the value of things they are considering, think about saving it for something they’d enjoy more later, etc. Some kids will blow it on something silly, but some will really think about it and consider the differences in values of different options. Quite the learning experience.

]]> By: Trent http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-3411 Trent Thu, 18 Jan 2007 06:44:05 +0000 http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-3411 You need to know her SSN to give a savings bond as a gift.

]]> By: Gordon http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-3410 Gordon Thu, 18 Jan 2007 06:41:25 +0000 http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-3410 I want to buy savings bonds for a friend of mine. What if I don’t know her SSN, will it matter?

]]> By: Lael http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-733 Lael Wed, 06 Dec 2006 20:56:08 +0000 http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-733 I received some Savings Bonds as a child – I remember my Mom and Dad showing them to me but have I ever seen them as an adult? No (and I’m 44 so they’ve had plenty of years to give them to me). They’re probably buried in some box somewhere in my parent’s home. Just remember, you have no control over what the parents do with them.

However, even so, I’ve decided to open a Sharebuilder account for my goddaughter (have my friends open it for me to deposit money into and buy what I ask them to)- whether or not that will work out better for her we’ll see in the long run.

]]> By: JLP @ AllFinancialMatters http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-700 JLP @ AllFinancialMatters Wed, 06 Dec 2006 02:13:31 +0000 http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-700 Why not consider a mutual fund?

Jonathan Clements of the Wall Street Journal did an article about this topic back in June. I don’t know what your budget is but the AARP Aggressive Fund only requires $100 to get started.

Just an idea.

]]> By: Lazy Man and Money http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-689 Lazy Man and Money Tue, 05 Dec 2006 22:22:44 +0000 http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-689 Is there some game (video or otherwise) that could be both entertaining and educational about money? I think I read something about the Sims 2 having an expansion pack or something. You might be able to accomplish both fun and financial learning.

If he’s into baseball and statistics, I’d recommend a copy of Baseball Mogul, where you play owner and GM of a baseball team. There’s the finance aspect as well as the game play of building a great team through trades and development.

]]> By: bluntmoney http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-683 bluntmoney Tue, 05 Dec 2006 21:23:00 +0000 http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-683 He might or might not appreciate it now, but he sure will when he’s older.

]]> By: One Frugal Girl http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-682 One Frugal Girl Tue, 05 Dec 2006 21:10:25 +0000 http://www.thesimpledollar.com/2006/12/05/the-ups-and-downs-of-giving-savings-bonds-as-gifts/#comment-682 My husband and I buy savings bonds for our niece and nephew for Christmas. At this age they really don’t know what we give them, one is an infant the other is a toddler. We have considered giving them traditional gifts as they get older. Children receive so many gifts on Christmas day that they simply can’t enjoy them all. Rather than giving them yet another toy they’ll soon outgrow we give them savings bonds and usually a $2 – $5 toy just so they have a gift to open.

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