What should my 4 year old grandchild do with the funds in his full piggy bank?

[csziggy]

6. Another suggestion - don't force information on the kid

My Dad did that with his grandkids - he'd send them articles on investing, how to save, etc. They hated it, and just would not read any of the information he tried to give them.

I think he would have done better if he had done as my husband's grandmother - given them some stock. Although my husband never turned into a stock market talent, he has a good understanding of how investing works. With me, knowing that I had the savings bonds accumulating taught the benefits of putting money somewhere, even if my parents sabotaged the saving accounts concept.

Frankly, I think the ownership of some sort of investment teaches a lot - it involved the kid more than anything else.

I do like the suggestion also made of donation - maybe combine that with an investment concept. Something like Kiva.org or Heifer International (heifer.org) lets people "invest" in other people. I like Kiva since you lend the money, get repaid and reinvest the money. It's investing, but more personal and targeted at people who really need the money.

http://www.kiva.org/

http://www.heifer.org/