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TOPIC: Savings method for child

Prepaid tuition 2 years 3 months ago #1

  • FrankN
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Many state universities offer this. The biggest downside is you can lose the investment if you child does not go there, but its worth considering especially if you know they will stay at a public state university.
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Prepaid tuition 2 years 4 months ago #2

  • Medi
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Is prepaid tuition still a thing to consider? If we can buy it at today's rates, locking in a relatively low price compared to later in the future, that will help a lot. The 529 plan seems to depend on investing and saving for later use instead of prepaid setup.
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Savings for kids 2 years 8 months ago #3

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Anyone else have any good recommendations for saving for children.
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Savings for kids 3 years 1 month ago #4

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That is a great example for your child! I am sure she will remember that for the rest of her life!
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Savings for kids 3 years 1 month ago #5

  • FrugalFran
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Egghead wrote:
That's a great attitude. Long term investments can take more risk for sure. I'm not sure I'd use all of it but a healthy proportion, yes, for sure. I also think that kids need hands on experience of money too, or it will never seem quite real or as meaningful.

The "hands-on" approach is so incredibly important! Kids these days seem to be surrounded by parents swiping credit cards and typing in passwords, but my daughter had an experience when she was four that I think has stuck with her and she remembers it when we talk about money. She had found seven pennies in a parking lot. The store we were going into had a "penny" candy bin by the register and there was a piece of candy in it that cost exactly seven cents. I explained that she could either save the money she found or spend it on the candy and she chose to get the candy. The look on her face when she had to hand the money over to the cashier broke my heart and I wanted to jump in and pay for it, but I didn't. A little while later, when the candy was gone, she said to me, "Mama, now I have no candy and no money." I seized that opportunity to have what I think was a very important conversation with her about money. I hope she never forgets that moment because making decisions like that is the foundation for a lot of the financial mistakes adults make.
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Growth would be good this early 3 years 1 month ago #6

  • Breakinger
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I remember when I was growing up, one of the first things my mom did was set up a savings account for my sister and I. I was so grateful that she did this because I saved up that money for a few years after I moved out and was able to have enough to put a down payment on my house. I think every parent should do this for their child.
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Growth would be good this early 3 years 1 month ago #7

  • djames
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I would definitely try to invest at least half in something with a decent rate of growth. In ten years, you should start being more conservative but at the age of six, you have time to really grow the savings amount. Even a mutual fund that invests in growth stocks (with a good track record) would be better than just a regular savings account.
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Savings for kids 3 years 1 month ago #8

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That's a great attitude. Long term investments can take more risk for sure. I'm not sure I'd use all of it but a healthy proportion, yes, for sure. I also think that kids need hands on experience of money too, or it will never seem quite real or as meaningful.
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Savings for kids 3 years 1 month ago #9

  • FrugalFran
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My husband and I have been talking about doing something more aggressive than a savings account with our daughter's money. It would involve more risk, of course, but she's only six, so the right decisions now could really pay off for her and any loss wouldn't seem like such a big hit.
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I remember my mother setting 3 years 2 months ago #10

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I would 2nd (or 3rd) the 529 college savings plans. They are great, 100% focused on savings for children's education, and there is a tax benefit for them.
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I remember my mother setting 3 years 2 months ago #11

  • Curry
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We are starting ours off now. She's 16 and wants a job, but hasn't landed one yet. Just a basic savings for now that we deposit into while she's with us watching and learning the process. When you're first starting off with something like this, just start with the basics. Finances can get very complicated so you don't want to bog down a beginner with a lot of options they are not going to fully understand.
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Savings 3 years 2 months ago #12

  • patse
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I'm all for teaching kids the importance of saving. The best way to teach anything, is to lead by example. Start them young, start a savings account for them. Let them make deposits.
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I remember my mother setting 3 years 2 months ago #13

  • jordane
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That is a great way to teach a child to save money. Try to teach children at a young age that savings are important. I started savings accounts for each of my kids. They have to deposit 1/2 of any money that they make or get as gifts into their account.
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Re: Savings method for child 9 years 8 months ago #14

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6/17/2009
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There are numerous saving insurance 10 years 9 months ago #15

  • sanju123
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There are numerous saving insurance policies for such case and you just need to chose one.At the same time I must add that all schemes lead to the same rate of interest and you just need to chose the one which suits your financial needs.
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