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CLEVELAND—While opening gifts at his 10^th birthday party this week, Kyle Millsap was assured by his grandfather that one day he would be sincerely grateful for the $300 savings bond contained within the plain white envelope he had just opened.

After ripping open a string of presents designed entirely to entertain Millsap, the 10-year-old finally encountered the envelope his maternal grandfather, Terry Hackston, had prepared for him. The envelope contained a savings bond, which according to Hackston provided a “much needed sense of prudence and practicality” to the otherwise frivolously fun-filled birthday celebration.

“I wonder how much help that gun that shoots foam arrows will be to Kyle when he needs to buy college textbooks in ten years,” said Hackston, referencing the year in which the U.S. government issued Patriot Bond will mature. “I’m pleased that my gift will put a smile on my grandson’s face for the next decade.

“This EE bond is guaranteed to be worth double its face value at maturity,” added Hackston, who selected the treasury security for its stability and assurance, saying both were integral traits to instill in a child Millsap’s age.

Though Millsap’s initial reactions ranged from confusion to indifference, adults attending the party agreed with Hackston that Millsap would be very happy in ten years that his grandfather set up a sum of money that could reach a value of $800 if interest rates climb seven percent within the next three years.

“I told Kyle, ‘You sure will be glad to have that money when you’re in college one day,’” said Millsap’s mother Debra Millsap, a 39-year-old accountant. “After I explained the advantages of investing via government securities and the ancillary benefits gained through financing government operations at the same time, he stopped crying. I think he really understands how much his grandfather cares about him now.

“I’m proud of my father for giving Kyle such a wise gift,” said the mother of three. “I think the phrase ‘full faith and credit’ applies to the man just as much as his gift.”

The young Millsap weighed in regarding the present. “I asked Grandpa for a Playstation 3,” recalled a teary-eyed Millsap. “I guess he didn’t know what that was, but after Mom talked to me, I’m pretty sure I can use [the savings bond] to buy one at Best Buy.”

Other children attending the birthday party were also slow to understand the purpose of the savings bond, but after a brief 15-minute explanation from Hackston covering treasury bond history from Series A bonds through the more recent Series EE type, the children appeared fully informed and supportive as none had any further questions or comments.

After the event Hackston was pleased he chose to give Millsap the savings bond for his birthday rather than for Christmas, as he had previously planned. “Now I have exposed this type of gift to those other children,” said Millsap’s grandfather. “Hopefully they will go home and tell their parents to put treasury securities on their Christmas lists. And if they’ve been good girls and boys, maybe Santa will bring them a sense of investment security that can only come from a U.S. government assured bond.” Send this story to a friend