We have 4 kids. It’s hard to save for their future and keep up with the present. We have come up with an idea that works great for our family and I thought it would be perfect to share with the rest of you. This is what we do with our children to be intentional on helping them save for the future.
First up, you need to create a bank account for your child. Each one of our children have a savings account that we opened shortly after their birth. Whenever anyone gives you a cash gift for baby, put it in the bank account. I suggest finding a credit union to create the account. Wherever you decide, be sure and ask tons of questions and make sure there are no fees associated with the account and that they understand it is for a minor.
Next, start planning. With our kids, we found it difficult to make sure we were being intentional about putting money in their accounts. What we have decided is to put a deposit in on their birthday and give according to their age times 10. For example, my middle daughter just turned 5. We put $50 in her account on her birthday. My oldest is turning 11 next week. We will put $110 in her account then. By the time they are 18, they will have $1,710 in their account just from their birthday gifts from mom and dad. That doesn’t count all the money gifts from relatives or what they want to deposit from their future earnings or their jobs done. It’s easier to teach them to save when they have been saving their entire life.
Speaking of birthdays, suggest to family or really good friends that you would like your child to receive money toward their savings instead of gifts. Use your discretion on this one as some family members and friends may be offended by this thought. We’ve explained to our family that our kids get gifts from their friends and we’d rather them save for their future and they understand that. There is certainly no shortage of toys around here or around any child that I’ve seen.
Make going to the bank a fun adventure so that the kids are excited to see the teller take their money and give them a receipt. Show your children how much they have saved and talk about how they are building savings for the future! Talk about their dream house, car, or college. Perhaps even saving for their future family. We tell our kids how we wished we had saved up more and how great it is that they already have more savings than we did when we got married. Plus at some banks, they get a lollipop, so that makes the trip worth it 🙂
Do you have any more tips to add? How does your family save for your children’s future?