When my kids were young I set up savings accounts for them and have put money into their accounts monthly. As they got older and closer to being adults, I decided that I would encourage them to not spend that money as soon as it was available to them (when the reach 18). Instead, I told them that at 18 the money is theirs to what they wanted with. There was a catch, though. I'd leave the automatic deposit on and continue adding to their savings as long as they didn't withdraw from the account. It isn't a lot of money going in each month, but it is nice to see that they see the value in letting it grow.
That's a great idea. I recently opened a saving account for my 8 year old.
I’m opening an online savings account for my sons. My youngest son(15) is taking financial literacy this school year.
Savings accounts are a good start. If you want to invest for your kids, consider UGMA or UTMA custodial accounts. That's how my parents got me started in investing.
I like that idea to deposit and then have them choose to watch it grow- it can teach them delayed gratification which slowly seems to be dwindling away in this age.
I have started a saving account for my niece and nephew they want get it until they are 21 they can do whatever they want to do with it.
Nicely done – I wish my parents did this for me, but I know times were and still are tough.
I have started a saving account for my niece and nephew they want get it until they are 21 they can do whatever they want to do with it.
Great initiative, @Jackie F., and it really sets your niece and nephew up for the future. Have you considered opening UGMAs or UTMAs for your niece and nephew? Doing so would allow you to invest those funds for greater potential growth.
