My son turned one recently and after all the money he has received when he was born, for baptism, and for his 1 yr birthday, he has about $1,500. My wife has it all in a savings account so far but I know the interest is a pittance. He won't be touching this money until he is at least 17 but more money will be put in as he gets it.
I've mentioned 529s to her but we don't know if he'll want to go to college. What can we put the money in where there is a guarantee of no loss. She is worried about investing because he could lose the money. I've explained that not investing is the same as losing 3% due to inflation but she won't budge on the no risk thing.
I know when I was younger I would get savings bonds each year and at the time, they would get around 4% but I'm guessing they pay very little now, plus the earnings are taxable.
Any ideas? I just want him to get a nice head start.