Comments on: Best Place to Save Money For Kids

By: Meaghan

Meaghan — Thu, 13 Aug 2009 21:58:03 +0000

It is so important to start the idea of saving right away. Your kids will just start to do it automatically as they get older…nice work!

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Mon, 03 Aug 2009 06:38:58 +0000

Good post– The sooner you get the kids started saving, the better.

By: Making Extra Money on eBay Edition | Money Smart Life

Making Extra Money on eBay Edition | Money Smart Life — Sun, 02 Aug 2009 20:20:12 +0000

[...] Frugal Dad shares some options where you can save birthday money. [...]

By: Sunday Money Roundup - Weeds, Weeds, Weeds Edition. | My Two Dollars

Sunday Money Roundup - Weeds, Weeds, Weeds Edition. | My Two Dollars — Sun, 02 Aug 2009 13:31:04 +0000

[...] Frugal Dad tells you about some places for you to Save Birthday Money For Kids. [...]

By: Squeaky

Squeaky — Sat, 01 Aug 2009 09:32:36 +0000

There are two purposes to investing for a child. The first is to allow as much time as possible to let wealth grow through compound interest or other means. The second is to train the child to save voluntarily. While savings bonds might come up short compared to many 529 plans in terms of wealth building, when it comes to the second goal they might do the job better.

There’s a tangible sense of value that goes along with a savings bond. They’re fun to look at, touch, and hold. They’ve got pictures of inspiring people. A young child might not appreciate the difference a single percentage point of interest can make, but he or she can watch savings bonds stack up in a drawer. Somehow the act of saving, and the gradual feeling of achievement, becomes tangible in a way that isn’t as easy with a 529 statement.
OH! You’re my new favorite blogger fyi

By: Squeaky

Squeaky — Fri, 31 Jul 2009 21:55:19 +0000

By: Linette

Linette — Fri, 31 Jul 2009 18:23:00 +0000

I don’t have kids, but I love the idea of splitting the money up for different savings. Maybe as they get older teach them to split up the money in percentages so they can have a little fun money, college money, savings or whatever.

Even if they only receive $5 and still split it up, the money will still grow nicely in any account they put it in.

By: YYC27

YYC27 — Fri, 31 Jul 2009 15:16:46 +0000

Interesting. But a lot of these options don’t apply unless your kids are getting hundreds or thousands of dollars in cash gifts. When I was growing up, I could count on cash from three relatives. Maybe $50 in total at Christmas.

By: Abel

Abel — Fri, 31 Jul 2009 15:11:52 +0000

Great subject! We have a 4 year old daughter… She LOVES to put money in her piggy bank. We’ll let her put change and a few birthday dollars in there, but she also has a CD. We’ve set up the 12 month CD to mature a week before her birthday every year, so when she’s ready (who knows when), I plan on taking it out and giving it to her for her birthday. Hopefully, by that time, I can instill good money management technique and she’ll do something smart with it.

By: Val@KeepItSimpleCowgirl

Val@KeepItSimpleCowgirl — Fri, 31 Jul 2009 13:41:06 +0000

Fabulous post! I get a bit sick to my stomach when attending parties that have stacks and stacks of toys.
Right now its in a jar….pretty old fashioned I know. They are just understanding what money is and I want them to see it growing. Periodically we take it out and count it. The seven year old “gets it” that her money is growing, so soon it will be time to set up a local savings account with her money. The five year old, not so much, he just sees lots of bills so that equates to him spending it on candy or toy cars. I worry a bit about him. We do let them keep a portion about 20% to spend on what their little hearts desire. the rest goes into the jar.