For decades, American families have used US Savings Bonds to help children save money for college. They don’t offer the best return, but they have no risk (other than inflation) and some tax benefits. They are easy to purchase, too.
In the past, they had an additional advantage: the spiffy paper bond with a maturity value that was twice the purchase price. For years, my husband and I have given savings bonds to our nieces and nephews for Christmas. These kids don’t need any more toys, and we liked the tangible statement: we cared about their futures and wanted them to have money for college. Even if the amount was small relative to the total cost of a college education, what kid would be dumb enough to turn it down?
My godparents and grandparents had given me some savings bonds when I was young, and they bought a textbook or two. I was grateful! It was nice knowing that all those years later, after my godfather and grandmothers were dead, that they were still looking out for me.
In the interest of efficiency, though, the Treasury Department is making it harder to give savings bonds. The lovely paper bonds are no longer available; purchases and redemptions are now entirely electronic. What’s good for the taxpayer is bad for the gift-giver! And yet, we will persist. My husband has decided that he will buy the bonds online and make our siblings do the work on their end. There’s no official piece of paper, but that’s why there are Christmas cards. We have a great-nephew now, and we want to continue this tradition with him.
I’m a huge fan of savings bonds as a practical gift for the kid who will get plenty from Santa or something nice every day of Hanukkah. Most American kids don’t need any more stuff; they won’t miss a box from you. If you’re looking for something for the special kids in your life, consider a savings bond that can be used for their college expenses long after their toys are broken and cute outfits outgrown. And, once the recipient’s family gets an account set up, it will be an easy present to give again next year.
