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Give saving bonds as a gift, and give someone a future

By Edited Sep 1, 2016 4 9

What is a savings bond?

A savings bond is as it says, a saving account that you have to be "tied in" with. This is fantastic for people who are worried that if they buy a child something or gave them money, that they may not receive it. Because there is a penalty for coming out of a savings bond early.

Because the bank know they have your money for a set period of time, they are willing to offer you better rates of interest on your money, than with an instant access account. And people are forgetting how to save at all. That new Blackberry the children want, will be replaced in a year and over $100 wasted. In a savings bond that would accumulate a great deal of growth.

Give a bond and watch it grow into a nice saving

Back when I was a young child getting a gift always included the usual suspects. Toys, games, tricycles and clothes, well you know the drill. One Christmas however, my mother surprised me with no big boxes or a surprise package stacked up in the garage with my name on it, just a large manila envelope. Oh great, I thought to myself. In those days they were called War Bonds since WWII was winding down and these government securities were being sold to help the war effort. Like most kids then I wasn’t thrilled about the gift until after I was discharged from the Navy and that strange gift my parents had saved for me had matured into a nice tidy sum of money I could use to further my education.

Today kids as young as seven even in these uncertain financial times, have cell phones, computer knowledge and a mixture of all the gadgets known to science available at their fingertips all courtesy of the bank of mom and dad. However, maybe it’s time for a new mindset for your young child and holidays and birthdays are perfect to get them on the road to money management, no matter how small the deed. They may frown now but not in 10 or 20 years when they see a pot-of-gold at the end of that rainbow you created for them.

There have been some changes over the years. In 2003 Congress ended the funding and phased out the issuance of using paper and taking a giant step forward to issuing all government securities electronically. Savings bonds are still quite easy to purchase. Most any bank or credit union would be happy to accommodate your request, but today it’s easier to buy them online. So attention mothers, dads and grandparents. Savings bonds today are still an excellent way to teach a young child the art of owning a financial parachute and saving for the future. TreasuryDirect.gov is your guiding light. The process is easy, safe and fast. About 10 minutes online and you'll be amazed how painless the savings trip was. 

Saving bond for the future generation

Just think, the toy that you may buy them for Christmas they may out grow or break in a few months. Let's face it, things are not made the way they use to be. One thing is for sure though, your child will struggle twice as hard as you, so even if you still wish to buy them gifts, which I would myself, there is no reason that you could not save 15% of your present budget to get them a saving bond is there? Your children will be grateful when they can put a deposit on their own property.
Give your child a hope for the future and get them some savings bonds.                                                   


Oct 27, 2011 12:53am
Savings bonds as gifts is a wonderful idea.
Oct 27, 2011 3:52am
Thank you LLWoodard, I think people need to remember their children's futures, instead of popularity.
Oct 27, 2011 10:47pm
I think savings bonds are great gifts for children. We have also bought our grandchildren stock! Kids love to be involved in planning for their futures. I think even young children can understand how important it is.
Oct 28, 2011 5:49am
So very true Deborah-Dian. It is a two fold experience between giving them a gift that keeps getting bigger, and teaching children that savings are important.
Oct 28, 2011 7:55am
My grandparents used to give me savings bonds all the time as child. I just bought my niece, silver coins, not quite savings bonds, but same idea!
Oct 28, 2011 8:00am
Definitely a good investment Kris. They don't know how lucky they are whilst they are little. I reached adulthood with all of £5 from my elders.
Oct 28, 2011 8:27am
My kids have gotten savings bonds as gifts. Our oldest daughter cashed hers in this summer to help pay for her sleepaway summer camp experience. It really helped her out!
Nov 7, 2011 1:50am
That sounds like she ended up with something she really wanted Mommyx3.
Aug 1, 2014 10:26am
How would one cash in the gift certificate as shown in the picture?
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