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Chze Whiz
Yahoo User
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 Posted: Sat Jul 12, 2008 10:52 am Post subject: Savings bond as wedding or baby shower gift for the child's college education? |
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| A casual work friend of mine is getting married but she is pregnant and already has two other children. (She's 22) I was going to buy her a little something for her new baby as well as a wedding gift. I was thinking instead of buying something seperate for both occasions and her wedding shower of spending around 75-100 dollars on US savings bonds for her children's college education.Would this be a thoughtful gift or seen as rude or tacky? She is a school cook and he is a school bus driver and she has told me she worries a lot about her kids going to college someday. They live together for several years and she has said she doesn't need anything for the home and is asking for only cash and she says she only needs cash for the baby as she already owns many baby things. I was thinking this would be more thoughtful than cash. |
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Alana
Yahoo User
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| Posted: Sat Jul 12, 2008 10:54 am Post subject: |
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| I think that would be very thoughtful. |
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luu_julie
Yahoo User
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| Posted: Sat Jul 12, 2008 10:54 am Post subject: |
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| I think that's a great idea. Your friend/her child will definately appreciate it when the time comes. |
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YouWish25
Yahoo User
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| Posted: Sat Jul 12, 2008 10:56 am Post subject: |
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| Saving bonds are a total waste. I'm 24 and I recently cashed in a $50 savings bond I got when I was born. I received $75 for it. I laughed and the teller at the bank agreed with me! They really don't have any value in them and I don't understand why people continue to give them out. They mature at such a slow rate. They aren't going to yield a high amount of interest in 18, 20 or 25 years. I say, give cash instead. If the parents want to save for college, that's their business and they'll take the cash and do so. But, saving bonds are a waste to me. I'd much rather give cash. That way, the couple can open a CD or something similar. They have a higher rate of return. |
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Angela B
Yahoo User
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| Posted: Sat Jul 12, 2008 10:56 am Post subject: |
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| Tacky? Of course not. That is very intelligent gift and I myself chose that option many times as my grandparents and family friends have done for me.But check the yields when you buy. You can select good from bad. |
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Ashley D
Yahoo User
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| Posted: Sat Jul 12, 2008 11:00 am Post subject: |
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| Since she is obviously close enough to you to tell you she is worried about her children going to college, I think she would see it as a wonderful gesture. |
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Lisa B
Yahoo User
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| Posted: Sat Jul 12, 2008 11:08 am Post subject: |
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| I think that it's a fantastic idea. I know I would love to be on the receiving end. |
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Suz123
Yahoo User
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| Posted: Sat Jul 12, 2008 11:14 am Post subject: |
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| http://www.finaid.org/savings/529plans.phtmlhttp://www.sec.gov/investor/pubs/intro529.htmWisest thing to do? Introduce your friend to your state's 529 plans.These prepaid tuition plans are wonderful. And if she starts paying by installments while the children are young, the payments will be very small.As the first site says, " . . . prepaid tuition plans are operated by state governments, with the tuition guarantee based on an enrollment-weighted average of in-state public college tuition rates. A few have separate plans for two and four year colleges and for room and board. If the student attends an in-state public college, the plan pays the tuition and required fees. If the student decides to attend a private or out-of-state college, the plans typically pay the average of in-state public college tuition."If the child decides not to attend college? Eventually, the money is returned to the now-adult child. He/she could use it for a wedding . . . or a down payment on a house.I strongly suggest you urge your friend to investigate 529 plans. As your gift, perhaps you could make the first payment?If you do disregard my advice (which is fine, your choice), I suggest you put only your own name and the child's name on the bonds. If a parent's name is on the bonds, it is quite likely parent will cash the bonds . . . long before child is ready to attend college. |
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LadyD
Yahoo User
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| Posted: Sat Jul 12, 2008 11:25 am Post subject: |
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Sounds to me like your friend really needs the cash now for the child. I was given a savings bond when I was born and I think it is still sitting in my filing cabinet (I am 2 . My parents had it for so long stored away somewhere and then they gave it to me which I put in my lockbox. I forgot about it. Guess I should cash that. I could buy a tank of gas! What I am saying is that even if you give them a savings bond with the intention of them putting it in a college fund it probably won't end up there espcially if they are as strapped for cash as you say. They might even cash it just to pay for the children now. Also, a wedding and having a baby is two separate occassions and both deserve separate gifts. I would give them money for the wedding (which they will probably put away for the kids anyway) and then give her a little gift for the baby shower. Baby clothes and diapers always make great gifts since diapers cost so much. Anyway that is my two cents. I know you will come to a good decision. |
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CBT Princess
Yahoo User
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| Posted: Sat Jul 12, 2008 3:11 pm Post subject: |
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| I think it's a nice idea, especially as she has said she is worried about the child's education. You could always have it with a small present for the child like a teddy bear... |
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