Hi, I wondered if any of you have savings or do savings for your children as they grow so when they are older, and of age, they have some extra money to get started in the real world with? If so, how do you guys do it? I’m wanting to start saving for both my girls (age 2 & one on the way currently) not sure how I want to do it; I don’t really mess with banks, but my husband does, and I thought of setting up a saving account for both, but I’m also leaning towards just putting cash back somewhere in my house, or is there any unique ways you guys do it? Thank you in advance for any advice or opinions!
Hi OP! This is a great idea and I’m personally so glad this a route you want to take; you’re not only doing the right thing by helping your girls out with their future, but setting them up for financial safety. I hope you continue to teach them about the basics of saving when they get older, as its one of the greatest gifts my parents did for me, even though we were not very well off when I was growing up.
What I suggest you do, since your daughters are still very small, is opening a High Yield Savings account or a CD if you are able, with for them, each in their name, but with you also signed on as an accessor; If you want to be even more safe, you can make it so that you are permitted to deposit, but not withdraw from their accounts.
I do NOT like banks either, but this is where things can get tricky. Credit Unions are great for establishing a relationship with a bank but I wouldn’t put all my eggs there; if you think you and your partner may need a loan to eventually buy cars for the girls, put a small savings account in their name, into the credit union of your choice (best interest rates offered) and let it sit until they need to use the credit union (and this can be as a little emergency fund for college, and be used to help them establish a student checking account later on).
In terms of real savings, I would recommend a certain company that rhymes with dynchrony (replace the ‘d’ with ‘s’) mainly because of the fact that they are one of the few banking companies that does not have a “physical” bank for you to go to; they have a headquarters but that’s about it, and due to the fact that they do not need to pay for those physical costs the way other branches do, you reap a lot of benefits, meaning higher interest rates. In a bit under a 5 years I was able to save up 10k with their help, as I deposited 2k to start, and when I would add more money, my apr would increase, so I had about 1.5-2% interest on my money for about 5 years. I would definitely consider looking into it OP and I wish you luck in the future!
I’d say do a savings. That way if anything were to happen to your house it won’t get stolen or anything. Or you won’t be tempted to borrow from it lol
Open a bank account that they can’t touch until they’re 18, then they take over.
I have three little ones, ages 9,8, and 3. We do have a savings for them. We give them $5 a week to do chores which they are given the option of spending or putting in their savings. We also have made it clear to our family we do not want gifts at birthdays or Christmas. They have plenty of toys, what they need more than anything is a future. They are allowed to spend some of their birthday money and Christmas money but most goes into their savings.It isn’t in a bank but in our personal safe. Each one has an envelope that we put their money into. And I must say my kids actually habe more money saved up than I do.
Yes I always had savings accounts for them.
We do savings account, a percentage of my check every week automatically deposits and 10% goes to each of the kids accounts with 70% going to my checking.
We opened a savings a little before their first big holiday so we could deposit anything they received.
Savings account! Builds interest and is insured! Something could happen to your home and pretty sure only like $300 cash is covered under some homeowners insurances!
A lot of banks have special accounts for children. I use a bank that if I make 12 consecutive deposits for a year (one each month at least $25 a time) then they average out the amount of deposits made for the year and the kids get free money. We put all birthday and Christmas money into it as well. I have 4 children (5,4,2 and 2 months) and there’s close to 6k among them
I have a customer who has a savings account for her baby that turns 1 this year.
You can open a savings account for each and have money from your account go in to them automatically like maybe $20 every paycheck. We also put any money they get in to there accounts for birthdays and such. Then they can get a car if they deserve at 16 or collage tuition, maybe a down payment on a house, with intrest it adds up. Also look into savings bonds which accumulate more intrest than savings accounts.
I’ve waitressed and always put my dollar bills and change back for my kids. They both have a savings account that they will get when they turn 18. If they want to go to college that’s what it will be for
I read one CUte idea…
They took a picture album and would place so much money weekly for child…
Said if you didn’t want to actually place money put the receipt where you had put it in bank…
We had IRAs. The main big wig took the money and ran. It’s still held up in court. (CB Life).
This is what happened to our savings. Be careful.
I direct deposit $20 from every paycheck into my son’s savings account. So he will have a nice nest egg when he needs it…
My 13 yr old has a savings account, 1/2 of bday/xmas $$ goes in, he gets an allowance & 10% has to go in each month, he gets his monthly statement & has to balance his register.
I have a savings account for my daughter any checks she got it gets in her name goes into the bank
Right now all 3 of my kids have piggy banks but my older 2 piggy banks have been stolen from to the point where they literally didn’t even have a penny in it, I would recommend getting a savings account for them. I’m currently looking into it that way the money doesn’t go missing again
Yes, our eldest 2 have savings jars, our youngest, we just started his. So he doesn’t have much. But he will.
So my aunt did something for me as a baby that i was able to use recently to help with buying a car….im not sure the type of policy but im sure an agent could give u better details anyway she got a type of life insurance that i could cash out or borrow against and man did it help me when i finally used it last month so that’s something worth looking into and she only paid 125 a year. Sorry i don’t have more details but i was able to keep the policy and borrow against it and i cant thank her enough for doing that when i was a baby!
Yup! The world will be very different in 18 years and I want to make sure he has cash to get what he needs to start what he wants to do
Start 529 college savings plans for them now. These can be used for any educational purposes, anyone can contribute, and you save the money tax-free.
I had a bank account for “Baby Broberg” before I was even born or had a name! There was seed money to start, then money from shower, birthday, Christmas money gifts. As I got older I’d put earnings from jobs in it. You can get both checking and savings accounts for them with money to spend (checking) and money to save for college, emergencies, or housing when they’re older (savings). You can be a joint owner on these accounts for however long you want; when they turn 12, 16, 18, or 25.
You can also take out savings bonds in their names that will grow over time.
You say you “don’t really mess with banks”? The best thing you can do for yourself is learn as much as you can about money, finance, investing, and basic info about taxes. Don’t rely on your husband or anyone else to manage your money, no matter how little you have. Also learn about scams and how to keep your assets safe physically and online. This is VERY IMPORTANT. I wouldn’t keep money in my house.
I put cash away for my daughter. The more she sees the more she wants to save.
We save $5 bills. It seems like a lot but you get used to it. All $5 bills go straight into her minor savings account.
We have one set up for our 2 kids (1 & 3). Birthday/holiday/piggy bank money goes into their account. We also put money in every time we got a stimulus check and when we get taxes back they get some. My parents also put some money in their account each month. My husband and I are going to get money direct deposited into their account from out money as well we just haven’t set it up set. haha
We do cash all 3 of my kids have a “stash” I pull every single 1$ bill I get in a pile. When they get older I’ll “charge” them a certain fee to learn about bills and money saving. And I’ll add that money to the stash. When they move out on their own they will receive the money.
We opened savings accounts for our 2 sons. We put either $500-$1000 every tax time. All B-Day and Christmas money I have them Save half/Spend half.
My kids dont even have bank accounts let alone savings
I have opened accounts in my bank as Bonus Saver accounts and direct debit money every pay day into their accounts. I am a grandma, and they are unaware of this money.
My daughter got a piggy bank for her first birthday. Any money she’s been given for holidays, spare change, spare cash, etc, goes into it. I haven’t started an account for her yet cause we filled it in the middle of covid but the plan is to deposit it, refill it, rinse and repeat and then give it to her when she’s ready to move out.
I do it automatically through an app called digit
My son has a post office account and its added to weekly
We do. We actually have two accounts for each kid. We have a 529 college savings account and a custodial savings account.
We’ve set up a junior ISA for our daughter through the Halifax. We put £50 a month in plus any money she gets for Easter, birthdays, Christmas etc. It fairly builds up
You can setup a Roth IRA account for you kids using Fidelity. Roth IRA’s are better than529 accounts or just a regular saving accounts. You can invest the money in a mutual and let compound interest and time do it’s magic.
I have 2 savings accounts. One for both boys. I also have some cash set aside (I save all of my dimes until the time they graduate for a college fund)
Get a photo album every week put 5 dollar bill in it with a picture or note. When the graduate give it to them it will be a great gift full of money and memories. It is only 260 a year but times 17 years for your 1 yr old that is 4400 dollars.
I have a bank account for my wee girl shes 2 so what ever christmas / birthday money she gets goes straight in also i put money in but i can also lift money out of it is shes needs clothes or wants toys etc if i havent got it then theres always that to fall back on. So easy to always put back again. I would have money in the house especially with ppl in an outta the house to.
Yes I set one up for both my girls when they were about 6 months old. They gain interest and we just continue to move money over. Any birthday or large amounts given goes directly in savings.
Look into a 529 plan
We opened a 529 one for each of our girls (1 month old and 3 year old). We set a certain amount we put every month in each account. We were looking into several options and that one made more sense with the goal we want to achieve (pay for their college education).
You might be burgled never ever leave cash at home.
We started a 529 for our kiddos
I have 529 for both kids the money is taken directly out of my checking account each month. Plus I have a regular savings account, I used to put our tax refund in …. We no longer get those lol. We still deposit using things like bottle returns, pocket change is never spent but rolled and deposited along with excess b-day money. It’s sounds trivial but it does all add up. The younger (you start) the better, as mine have aged and recognized things they want, they also want to spend “their” money. Good luck.
We purchased prepaid college plans and 529 savings plans for our daughters college. So thankful we did cause they were newborns then we blinked and they were graduating high school heading into college. If we didn’t have the college plans for them I’m pretty sure they wouldn’t have been able to afford to go to the colleges they wanted to. College and trade school is expensive but it helps guarantee a future for them if they decide to further their education. You can always put most of the amount you’re looking to save into a college fund and a smaller amount in a savings account in a bank to have some cash if they need it. They’ll grow interest on it and it won’t get lost, stolen or possibly damaged if there is an accident or fire if you kept it in your home.
If they will likely go to college, a 529 plan is perfect as it is tax free for both. Even if you don’t use it to pay the tuition, if it is withdrawn in connection with the tuition due dates, all is good. If not, then an UTMA where it wont be taxed for you and not taxed for the child up to a certain amount of interest per year.
We did an resp because there were many added benefits compared to a bank and apparently (with this company) your kid can use it towards anything that can be considered educational in any way not just strict schooling, and if your first kid doesn’t use it your second kid can… also the government matches a certain amount that you put in so it can like double what they get and if you decide to pull your money out you can do that too you just get your money back not the matched money etc
Any money the kids get from relatives goes straight into their own bank account. I also put £10 a month in each of their accounts.
My daughter is only 5 months old but I started a savings account for her about a month ago, it only has $20 but I got a baby sitting gig and hope to put a third of my pay in it a week
We started a 529 with the company that does our life insurance. We had money taken out of our checking account automatically. Wish we had started early because college is expensive. Even community college and trade school programs are expensive. Also, open a savings account for them. We would put change in the piggy bank, then count it and roll it up periodically. Then go to the bank and deposit it. It’s fun to watch the savings grow. If they got cash presents from people, most of it had to go in the bank. This way, when something big is needed, there’s a cushion. We made it a family discussion and now our adult daughter understands about banks, credit, etc. She was able to save for her own car. She’s now sabing and investing on her own.
My son has a savings account, he’s had it since he was a baby. I’m a single mom so I cannot add to it as much as I’d like too. He’s 15 now, but I’m hoping to have enough for at least a good down payment on a car for him next year. My bank allows him to have an account linked to mine.
My daughter has a fatcat account that her grandparents made for her that gathers interest. it was made for her at 1 yr old. I also have a credit card in her name that I buy her clothes with every season and pay it on time so by 18 years old I can give her perfect credit for her birthday.
Yes. I have a savings account linked to mine for 1 if the kids, hubby has the same for the other, any birthday money gets transferred into that and we send bits over here and there. They both have isas that we pay into and the grandparents pay into too and my parents have separate savings accounts for all the grandkids that they pay into
Cash is just kind of scary because God forbid, what if you get robbed or your house burns down, I mean it doesn’t happen all the time but it does happen. I have an app it’s called Green Light and it’s pretty cool because it gives them a savings account and a checking account and you multiple people like say a grandparent can add money onto it electronically and once they are older it gives them a debit card with their name and picture on it that they can use and they can’t move money from savings to checking only you can. Plus you can invest in the stick market on there too so it’s pretty cool. It does charge like $5 a month tho but I thought it was worth it. It might be a better option for you when your kids get a little older.
On our house hold. You want money you earn it. So when they teenagers they get a job. And they have to save half of what they make and aloud to spend half. The half saved not aloud to touch intell they leave home. So the half they spend if they want something that’s what they spend. So of it cost a lot save it up first with the half they aloud
We just put away $5 a week and any birthday/Xmas money’s into a child account with our chosen bank. We’ll give it to them for there first car or if they want/ need something big before then that’s worth while.
I opened an UTMA custodial account for my daughter, it isn’t strict education only like a 529 plan. They can use the money for whatever they want. First car, school, house, wedding, etc. With no penalty. When she turns 18 the account automatically transfers to her, she can do with it as she pleases. Use it or continue to add to it for retirement.
They have there own account. I deposit money when I get paid. They are 9 & 6. I will start my youngest (1 week) when I get her BC & SSN
I save £2 coins. It takes time but his first pot had 750 quid in it. Now they’re split between him and his sister but it’s a good way to save. I cant spend a £2 coin even of I had a tenners worth in them lol. When babies I put birthday and Christmas money in too cause they’re not old enough to spend themselves.
I opened my little boy a bank account when he was about 6 months old. £20 a month goes in and all his christening money went into it. He’s 5 now so he spends his birthday money. But he’s got over a grand in there and will have a good amount when he’s older.
He won’t be able to blow it. It will either buy him a car or he will have it towards a house! He won’t just get it at 18 and do whatever he wants with it. I seen a lot of friends blow savings that way x
Yes. I set up a FatCat account for my daughter when she was a few months old, and I just add money to it and it can draw interest. My brother also set up a saving account for her too. She is now almost 7
Currently 35 weeks pregnant, started a savings acc the day I heard that heartbeat $20 automatically a pay goes in child has a better savings than me cause I spend all mine on her and she’s not even here yet
I got both kids savings accounts when they were born. I am a co signer, or whatever it’s called. Anytime they got money for something, I put it in their account. When they were old enough, they would help fill in the deposit slip and would go to the bank with me to put it in their account. They are 18 and 20 now and both have a lot of $ and are savers! They learned how to manage money at a very young age.
We have a saving at chase bank. We started saving when she was about 3 years old. We recycle together and the money goes in the bank. She found it fun. She fills out the deposit slip. It is a way she learned about banking and saving. She has $2200. 00. She’s fourteen now. We are still doing it.
You can do a savings or you can also when your children get about 16 years old or in school college etc. cosign for them for a credit card and put a limit on it keep up with the payments by time your son or daughter gets older wants to get married bye a house or get a car what ever they want … life will be set with a perfect credit score
I had a financial planner figure out how much college would cost them divided by number of months until they graduated from the day they were born and started their savings.
My son is nearly two and I started after his christening by putting money in each week to the credit union for him when he turns 18 , so when he goes to college it will be there for security, credit union is great
I put a small amount into a saving account each week for my kids. Works well and I don’t even notice the money going out
I set up college funds and a set amount transfers over each month
I opened a credit union account your husband could set up a direct debit if needs rather than you having to go in every week to lodge money into their accounts can’t touch it until they are 7 years old
What about that Gerber baby insurance. They can take 5k when they turn 21. They give you a packet at the hospital its usually in the bag
My husband and I opened an account when our daughter was born. We each have a standing order of £10 per month going into it and I usually put at least half her birthday/Christmas money into it. If she’s mature enough she’ll get it at 18, if not, 21 lol
I plan on saving money for my daughter but also when she is of age to get a job an she wants to get a job charge her 100 every week for her bills but instead I will be putting it in a savings account and if she gets a job at 16 and keeps on until she is 20 she will have 21000 saved up to start her off in life
All four of our kids have savings accounts and we deposit money into them every week as a nest egg. Our two older children also have "spending " accounts
I had a savings account growing up but I do the Gerber life for my kids. The younger you start them the cheaper monthly payments you do.
Search premium bonds . You put in when you want ie birthday Christmas or monthly ect and each month you get put in to a draw to win money any where from 25 quid up you don’t always win but you don’t loose your money you save and when they reach a certain age they can choose to keep it going or withdraw the money
My Daughter’s aunt and uncle have a college fund savings account for her. They have opted not to give presents on occasions and will put money in the account in lieu of presents. I also give them money to put in there on occasions and when I have Extra.
We legit save all our change and occasional dollar bills. We’ve been doing it since she was born and her bank account is looking nice now!
Best advice I could ever give to a new parent, is to open a pension for their new born child. If you pay in 7/day for the first 10 years of their life they will have a pension pot of approx 2.4 million (compound interest). You will single handedly change the future direction of your familly and remove a lifelong worry for your child. Yes my children have savings, they also have investments.
We haven’t set up a bank account yet but we collect our silver change in multiple little cans & one big fat golden piggy.
Only well off people can do that, not people only surviving from day to day.
I opened one with acorns and put away $15 a month
25 bux a week since the dsy thwy were born. Roughly 1200 a year plus interest. Go towards a house. Nothing else
Set up accounts for them and put 10$ a week in each until theyre 18
We save all the money from their birthdays
We give them $5 month
Savings account are great ideas, also look into buying shares in their name. That’s a great way of doing it too, as long as you know what you’re doing and get in at the right time. We do shares and savings accounts for our daughter.
I opened a trust when my kid was born & put in a set amount a fortnight with my bank / credit union. They also have a savings account for pocket money / chores
Look into a 529 savings plan…
If u are an Indian u can go for Sukanya samrudhi scheme which is specifically for girl child
I started putting $$ away each week the moment I found out I was pregnant, then after they were born and I had their birth certificate, I opened an account. I transfer some into their accounts each week, be it $10 or $50. (My aim is to put at least $1000 a year in their accounts - I have 2 kids)
Once I had enough saved, I opened them an investment account, so the balance gains interest, and every year I transfer the balance of their savings account over into their investment one.
By the time they’re 21 they should have enough for a decent car, or home deposit … or whatever lol.
Kids should understand they need to earn their own money, but the way the world’s going (have u seen the cost of living lately??) I’d like to give them some help.
Scalping ps5s Xbox’s graphic cards spas etc all profits go into bank account for kids when they’re older
I set up saving accounts for my grandkids. I do an automatic transfer into them. The accounts are only about 10 years old so not much money in them. Your bank can help you set them up and do the auto transfer. The accounts are in their names and my name. That gives access to both of us if needed.
Savings account with you as a cosigner! It will slowly accrue interest and you can always deposit more.
If you save cash somewhere around the house, there’s possibilities of spending it yourself, losing it, or even having it stolen (speaking from experience).