Most parents don’t think of setting up a savings plan for their newborn child. Yet when their child turns college-age, they sure wish they would have!
If you set up a baby savings account while your child is still a newborn — and contribute a very small amount ($12/yr) to that account monthly — then your child will never want for anything.
Plus, over time you will be teaching your child the good habit of saving money. It’s kind of fun too!
The simplest way to start a baby savings account is to do this:
- When your baby is born, open a savings account in their name.
- Then, for their first year of life, put $1.00 into your baby’s savings account each month.
- On your child’s first birthday start putting $1.50 each month into your baby’s savings account.
- When your child turns 2, start putting in $2.00 each month.
- Once they turn 3, put in $3.00 each month — and so on until your child turns 18.
When the time comes, your child will have no problem paying for college or whatever else they might choose to do as an adult.
My favorite things to write about are topics that have to do with pregnancy, weddings, saving money, living green, and life with dogs. When I’m not writing, I love to spend time with my husband, read, create 3D artwork and Native American beadwork.
