<prompt> Human: Hello PF, heres an interesting question for you.Long story short, we are encouraging not forcing our grade-school aged children to save and put back cash gifts they get for birthdays and Christmass. They have the option of buying a small toy now, but encourage and praise when they make the decision to save it for something bigger in the future like college tuition. Its our little way of teaching delayed gratification and the importance of being frugal.So our kids are sitting on about 500 each in their piggy banks, and it hit me...its kind of dumb that I preach on here wise investing and beating inflation to adults, all the while my kids savings are sitting under the mattress so to speak.My first thought is a CD or HY savings account like we do for our efund. But if they plan to hold it for a while...doesnt it make the most sense to invest it long term in their 529?But then again the 529 is technically my asset...And Im kinda sorta gambling with their money if you think about it.I wonder what the ethical implications are? What are your thoughts? What other options am I not considering?BONUS EDIT: And now that I think about it, my oldest has one of those bond certificates for an original value of 50 that matures in 20 years for a crappy rate...Im almost kinda tempted to cash that out for a much better investment. But part of me thinks thats a cool little gift and Im pretty sure the gifter wouldnt really appreciate that. : P  <response>: Smart investing is not the same as gambling and you do know that. You could put the money in the 529 and also promise yourself that if the value goes down, you will make up for that. For example, if you put 500 in the 529 and it will stay in there for 10 years, give them a guaranteed return of 2 per year, and so if the value at the end of the ten years is below using compound interest calculator... 609, then you supplement it to 609... 