Am I a Grandpa if I get my nephew a Savings Bond?

Cuz I gotta tell you, it sure feels like it ;) I don’t know about you all, but that’s alllll I got growing up from the g-parents! Birthdays, holidays, confirmations, you name it. A big, fat, weird paper looking thing that we weren’t able to cash.

Of course, back then if it couldn’t be played with or eaten, I didn’t care what it was! haha..but NOW I’m like “Hot damn I got some bling bling in my safe!” That’s an extra $500 smackers I have access too.

That being said, do I really want to go down as the next Grandpa in our family? Sure I find them sexy as hell, but would a 1 year old? (okay yeah, that sentence didn’t come out right at all). I’m not sure to be honest, so I say it’s time to play the ol’ Pros vs Cons game! This usually helps sort it all out.

PROS of Gifting Savings Bonds:

  1. Double the present, for half the money! If you pick up an EE Savings Bond, you only pay half of what it’ll one day be worth. So if i go the $50 route per my holiday budget, i can actually give a $100 bond! And even if the kid can’t wait the 20 or whatever years, it’ll ALWAYS be worth at least the original $50 you plopped down.
  2. You can buy them online. That’s right, so as i sit here typing away 3 days before Christmas, all i have to do is hop over to and fill out a little info! Of course, you could also just slip into your neighborhood bank as well. (Update: #1 – there’s a 2 week waiting period once you sign up online :( #2 – some banks stopped issuing them…Our local M&T bank stopped, BUT our local credit union still does them! Filled out the form and good to go now)
  3. You can buy one for ANY amount. Have a budget of $25? no problemo. $200? works for me! If you’re picking up an electronic EE bond, you can actually buy them to the penny with a min. of $25. If you go the paper route, the denominations are $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000. Remember though, you only pay HALF of that with the EE bonds.
  4. No wrapping required! It’s like giving yourself a gift :) Or if you prefer, you could always print out the online “gift certificate” Treasury Direct concocted and wrap that little guy up too….i don’t know why, but it cracks me up. Click on the picture up top to see what i mean ;)
  5. Your Grandparents will smile down on ya :) Yup, that’s a fact Jack.

CONS of Gifting Savings Bonds

  1. You’ll be perceived as an old fart. I think we pretty much covered this one…
  2. It can’t be used anytime soon. Not so great for instant gratification.
  3. It’s sorta like giving cash. While it’s def. an investment, you’re still handing over money.
  4. It may get lost over time. If in paper form. (You can always purchase electronic bonds through Treasury Direct though, and/or convert your old paper ones.)
  5. You’ll get thanked 20 years from now… Unless the kid is the next Warren Buffet, he/she won’t actually appreciate your thoughtfulness until they grow up ;)

Yeah, i think the Pros won me over. It may not be the funnest gift out there, but perhaps i can convince the little booger of value early on (he’s 1 y/o). Plus, i’m really running out of time here! I swear one of these years i’m gonna have all my Xmas shopping done in November…

Any of you ever give the gift of investment? And did it go over smoothly?

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