If you've followed the summer projects Cora and I dreamed up over the past few weeks, you may know more about your child than you ever wanted to know. However, do you know what kind of BUYandHOLD investor your child is now? Do you know what kind of BUYandHOLD investor you are at this point in your life? Today, we'll play with this section of BUYandHOLD, because these categories will help you and your children match your goals to your finances.

To begin, you can impose one goal on your child(ren)'s list of short-term goals from last week's article. This goal is "invest for these goals and for my future." This future is unpredictable, because we may not complete our 100 goals in this current lifetime. Unforeseen circumstances may inhibit or prevent these goals from reaching fruition. Sometimes these barriers are fortunate windfalls - perhaps your child will invent a new toy that rakes in millions of dollars, or - perchance - you will win the lottery (hahaha). On the other hand, broken bones, illnesses, and other unfortunate circumstances might chip away at our savings. Therefore, it's a great idea to invest for the future so we can have a reserve on hand to 1) complete goals or 2) to manage the windfalls and pitfalls in our lives.

When your child begins to match their goals to family finances they may begin to realize your pocket isn't endless. For instance, if they want to save for college, this is a huge financial goal that works better if started sooner, because this goal benefits from various monetary sources (including presents from relatives and friends). If they want to learn how to play baseball, this is a much smaller financial need that will fluctuate with their desire to continue to play this game.

Chores, w-o-r-k, and monetary gifts all contribute to our portfolios, but we also need to understand our individual financial and emotional temperaments. Let's take a look at what BUYandHOLD offers for different monetary and psychological make-ups:

1. The BUYandHOLDER: This is the least expensive BUYandHOLD investment plan, and allows the budget-conscious investor to pinch pennies and still build a portfolio. This is also a perfect plan for children, because they can afford their monthly fee if they work. Each account currently costs $6.99 per month. These payments include your first two buys, sells, or E-ZVest^sm trades per month. If you think about the total amount for each account you want to open, it may scare you off if you're living on a limited budget. However, if you can refrain from purchasing one container of ice cream or two pair of inexpensive pantyhose per month, you have the cash for one account. For another $2.99 per month, you can choose three investments from your three different sectors (see last week), and make three payments into these funds per month.
   
   
2. The BUYandHOLD E-ZVester: You can go on with life and let BUYandHOLD deposit, purchase, and hold your investments according to your approved schedule - weekly, monthly, or quarterly. You have two choices here: The Unlimited Investing Plan, where you can purchase an unlimited number of stocks during these timeframes currently for $14.99 per month, or the Basic Investing Plan, which is set up financially like #1.
   
   
3. The BUYandBUYandHOLDer: This account is for those who have unlimited time and money to purchase stocks. If you are currently interested in the Basic Plan, you can change to this Unlimited Plan at any time. So, if your child invents that million-dollar toy, you can change his or her account and have a blast investing in their unlimited future.

After you and your children decide what kind of BUYandHOLD investors you are, the next step to match your goals with your finances is to open an account at BUYandHOLD. The enrollment is safe, easy, and BUYandHOLD will not reveal your personal information to anyone. The option for special discounts and offers can be approved or negated at your discretion.

When you proceed to the next page, let BUYandHOLD know what type of account you want to open. You may want to open several accounts, because there are a few options available for you and your children. If you want an account for yourself, you can choose among individual accounts and three different IRA accounts. For underage children, you can open custodial accounts or Coverdell ESA accounts. The custodial account is for goal planning. Create a Coverdell ESA specifically for educational goals. The Coverdell replaces the Educational IRA and works similar to a Roth IRA, because the interest is never taxed.

My advice at this point is to open an individual account for yourself if you haven't done so already. Experiment with this account over the next month so you become familiar with your portfolio structure. You'll learn to trust BUYandHOLD's features and this knowledge will help you open accounts for your children before they begin their school year. According to my daughter, a portfolio is a "cool" thing to own, so you'll definitely up your own coolness factor if you work toward this short-term goal.

Your children can begin two separate lists this week: one is concerned about how to cut corners to save cash, and the other is about how they can earn money for their own accounts. You may spend some time relaying information to them, like the cost of the items in the fridge. If you have grocery receipts, hand them over so they can see how it all mounts up, including tax and any service charges. Next week we'll share what we learned when I shared my receipts with Cora.

Until Next Week,
Linda Goin