Best way to invest for kids

[Shella Sanders]

I have a 2yo and a 6mo and I want to get them both set up with some kind of savings accounts. I can easily commit to $50/mo each and be consistent with that on autopilot and throw in an extra $500 or so here an there when I close deals. Any suggestions for which kind of account is best? I remember going to BOA and talking to the guy in there about some college fund account like a year ago. Just want to make the best decision

[Austin Fruechting]

We ended up not having kids, but here was my plan (and if we do have kids this will be what I do):

About the time they are 5-7 (or whenever they are old enough to remember stuff and understand a little) I was going to purchase a rental property for them.  I would involve them in everything. All banker meetings, property visits, any dealings with property managers, contractors, bookkeeping, etc.  The cash flow would be their allowance and savings.  Maybe we even split the cash flow to teach them nobody works for free.  The savings part of the cash flow along with the equity would be their college fund.  When the savings added up to enough we would buy them another property and they would be involved in the property analysis and selection of a new investment. 

At 18 years old they would become the sole owner of all the properties.  They could sell them... or refinance it to buy more... or whatever.   

I figured that way I could not only teach them to work for their money, but also how to make their money work for them.