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How to Get A Bond

March 31, 2019

I want to buy a $25 bond with Treasury Direct. According to Savings and Investment Information for Teens by Karen Bellenir, a lovely book I found at the library, an EE bond is an electronic amount that will eventually mature. Certain bonds pay you at designated intervals, with a fixed interest rate. When a bond matures, you are paid the rest of the interest (245). You can get a bond through Treasury Direct, banks or other institutions. I have to pay a visit to the credit union to see if they would have these bonds. I’m ignorant about money, just plain ignorant. I know how to budget while living pay check to pay check but I do not know enough about money.

Apparently my social security number is required to buy a bond. I have to pay a visit to the SSI office so as to chat about making more money than I have right now. Yes, I live paycheck to paycheck. When a bond matures, it is worth $1,000 although you can buy at a discount. Above the face value, means you are buying a premium. You want to get your full money back when the bond matures. If I had gotten a bond in high school, it would have matured by now.

Investing in a bond means you have to hold it to maturity. The bond issuer can be the government or a corporation. A bond is a gift that can be passed to someone else using his or her social security number. Paying existing debt can result from having a bond but I had a Pell Grant in college so I have no debt. My goal is no debt at all even if my credit card has a high bill right now. I’m still ignorant on bonds after watching YouTube videos and reading books. But one thing is clear, I need to set myself up for financial security and quit living paycheck to paycheck even if I’m good at managing my money.

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