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The other weekend ING Direct had a special on new accounts, including a $27 bonus for opening a kids savings account.
Gift Money = Savings Account
We decided to go ahead and take advantage of the deal. We opened a savings account and used gift money our daughter got from her Nana (great grandma).
Why Save Money So Early?
What are we saving for? We honestly don't have an idea right now. We're using it to hold gift money that our family and friends have gave to our baby.
It's small now, but we're looking at options for the account in the next few years.
There are some ways we can use the money for our daughter that I can think of, such as:
- General Savings: I think the savings account at the very least will always have a chunk of money in it for savings. I'm think more for long term goals vs a toy fund.
- Car Fund: One day our baby will get old enough and responsible enough to want to drive. We could use her little stash to cover the car expenses.
- College: When the balance has a bit of a buffer in there, we may take a portion to open up either a 529 College Savings Plan or a Coverdell Education Savings Account.
- Investing: Perhaps when she gets old to want to understand the basics of investing we could use a little bit of this money to open an account.
Whatever we decide to do later, we'll discuss it together. Our hope is that our daughter can use this account to not only learn about finances, but also responsibility.
Good news is that we got some time – she's only 4 months!
Thoughts on Saving for Your Kids
I'd love to hear from other parents. How many of you have opened up a savings account for your child? What money goes into the account?