Last year I started investing for my grandkids, five of them, ages 10,13,15,16, and 16. I set up a custodial account with an on-line broker (Ameritrade) and invested $800.00 in each account. I let them pick the stocks. Hopefully as time goes on they will gain an understanding of the financial markets. And I hope they will continue to let the money accumulate until they are 30 years old. Making that assumption and assuming a growth rate of 11%, the youngest will have $51,362.27 in their account when they are 30 years old, not a fortune but a solid base. The oldest will have accumulated $24,075.93 in their account when they reach 30 years of age.
I hope that they will learn the lesson of saving at an early age and will start investing their own money when they begin working and begin their careers.
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