Q: My sister-in-law has been giving my daughter, now age 4, an I-Bond as birthday gifts for the past four years. Is this a good way to have money in the future for my daughter's education? Is the I-bond better than the other bonds? Should I tell my sister-in-law to just give us cash and I'll put it into my investment account? - Y.R., New Jersey



A: There's almost nothing you can give a kid in small amounts that will earn enough to be worth talking about, and that includes I-Bonds, E-Bonds and others. Giving you cash in your own account also will generate almost no return.

If the number of dollars is substantial, you might investigate 529 accounts, which prepay college expenses. These are operated by the state you reside in, and each state has at least one plan. Unfortunately, small amounts of money make it almost impossible to get anything other than a pittance in return.