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Savings Accounts for Babies and Children

Does Your Baby Have a Savings Account?

One parenting task is to teach children how to budget and save money, but most moms and dads take savings into their own hands in the beginning. Many open a bank account for the child when they are an infant, while others may wait until the child is a bit older before stowing away the cash.

Despite your personal views on getting your tot started financially, the government is considering making the first deposit into your babies savings account by giving all newborns born in the United States a $500 contribution, which could later be used for education, a first home, or retirement. If passed by lawmakers, the America Saving for Personal Investment, Retirement, and Education (ASPIRE) Act won't be in effect until 2010, so all wee ones born before then will have to fill their accounts the old way.

Regardless of government intervention in the future, do you already have a savings account started for your baby?

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Join The Conversation
MissSushi MissSushi 7 years
It's kind of a good idea, i guess. I don't feel strongly either way. Obviously, if they're doing it, its helpful and will be helpful for people on lower incomes. Lots of tech schools have low supply costs, so this and a grant would help ease someone not financially able into a tech school. I plan to really teach my kids about finances. Sometimes, it will toe the line of adult knowledge, but I want them to be realistic about money. While I was babysitting at 10 and buying my own clothing and electronics, toys, etc from then on, my sisters never worked, didnt hardly do chores, had absolutely no financial responsibility. As a result, they were completely clueless. They begged and guilted our financially strapped parents in jr high and high school, and spent money like water. They were rude and scornful older teenagers, and expected expensive gifts from others for birthdays and holidays. When they moved out on their own, they tanked hard. They spent money on ridiculous things and borrowed to buy food. It took a good 2 years of working and surviving for both of them to finally wake up. I don't want to deal with the petty teenager money thing, I want them to have more knowledge and tolerance and better budgeting habits.
EvieJ EvieJ 7 years
In the UK, every child is entitled to £350 at birth and again at the 7th birthday for his/her Childhood Trust Fund. Sounds like what the US is introducing.
starbucks2 starbucks2 7 years
I voted other too. We are paying off a house. When she goes to college it will be paid off, so that we have the means to finance her. We are saving up for her retirement too (in Germany the state supports that big way when you start young, it will really pay off in the end). And she has a piggy bank in her room where I drop a few coins every now and then.
schnappycat schnappycat 7 years
I voted other. We don't have a bank savings account for him yet per se, but we did open a 529 college savings plan for him when he was born. I expect we will start some kind of savings account for misc. items when he is a bit older and can learn about money management.
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