Savings Bonds

Posted by on Aug. 21, 2013 at 11:42 PM
  • 25 Replies
Ds1 has multiple savings bonds in his name. He knows where they are and what they are for and how they work. He has one bond that his grandfather got him for xmas in 2007 for $200. It is an I bond and is now worth about $270. He asked me if I would cash it for him so he can buy new school clothes and shoes. Should I let him cash it? it is his money and he is not asking to cash the more expensive bonds that he has but Im not sure if its a good enough reason. He has clothes dont get me wrong but he has become much more aware of his appearance and apparently he thinks what he has is too young looking for middle school. *sigh* it was so much easier when he didnt care
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by on Aug. 21, 2013 at 11:42 PM
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Replies (1-10):
bwsmommy
by Platinum Member on Aug. 21, 2013 at 11:46 PM

Im clueless about bonds .. but heres hoping someone else knows the answer !

shymomof4
by Silver Member on Aug. 22, 2013 at 12:26 AM

I didn't know bonds ever were worth more than they were purchased for.  I thought it took years to get the value up to the price on the bond.  I obviously don't have much experience with bonds lol.  Are you planning to buy him new school clothes yourself?  If not then I would let him cash one of them out.  

PoehlerBear1983
by Platinum Member on Aug. 22, 2013 at 1:00 AM
There are different types of bonds EE bonds will mature for 30 years if you let them and when you buy it you only pay for half its value. I bonds are bought for face value

Anyways no I was not planning on buying him new clothes. I can not afford what he wants and he does have clothes he can wear just not What he wants.

Quoting shymomof4:

I didn't know bonds ever were worth more than they were purchased for.  I thought it took years to get the value up to the price on the bond.  I obviously don't have much experience with bonds lol.  Are you planning to buy him new school clothes yourself?  If not then I would let him cash one of them out.  



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chrissydan
by Silver Member on Aug. 22, 2013 at 1:09 AM
I wouldn't
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momofnatalie
by Lisa on Aug. 22, 2013 at 2:16 AM
I wouldn't I think if it was for something he really needed, yes, but since he has clothes, I would tell him that you are saving it for his future.
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shymomof4
by Silver Member on Aug. 22, 2013 at 2:18 AM

Thanks for explaining about the difference.  That makes sense.  I know they are meant to save but I would probably let him cash one.  I would be sure that he understood it was a one time only thing though.  


Quoting PoehlerBear1983:

There are different types of bonds EE bonds will mature for 30 years if you let them and when you buy it you only pay for half its value. I bonds are bought for face value

Anyways no I was not planning on buying him new clothes. I can not afford what he wants and he does have clothes he can wear just not What he wants.

Quoting shymomof4:

I didn't know bonds ever were worth more than they were purchased for.  I thought it took years to get the value up to the price on the bond.  I obviously don't have much experience with bonds lol.  Are you planning to buy him new school clothes yourself?  If not then I would let him cash one of them out.  





Jerichos_Mommy
by Platinum Member on Aug. 22, 2013 at 3:12 AM

I think this is a good learneing lesson for him.  Explain his options, I see three.

1) He can leave the bond where it is and let it grow and just wear what he has.

2) He can cash the bond and spend it all on clothes.  Since he is doing that you will not need to help him buy clothes.  But he has less savings for the future.


3) He can cash the bon, reinvest 1/2 into another bond so it keeps growing and have half for clothes.  Since he is only using part of the money you will help with clothes


Let him analyze the pros and cons of each, make his decision and learn from the good and bad aspects of that decision.


brownhoney21
by Ruby Member on Aug. 22, 2013 at 6:26 AM

 

Quoting momofnatalie:

I wouldn't I think if it was for something he really needed, yes, but since he has clothes, I would tell him that you are saving it for his future.

 

chicken13
by Bronze Member on Aug. 22, 2013 at 6:46 AM

He's going to want a car waaaaaayyyyyy more than clothes.  

MamaJane
by Jane:) on Aug. 22, 2013 at 7:06 AM
I think I would go with this one too. I understand what he's saying and that's really a tough spot with a semi reasonable request.

Quoting momofnatalie:

I wouldn't I think if it was for something he really needed, yes, but since he has clothes, I would tell him that you are saving it for his future.
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