Saving account options for baby?

[FamilyOfThree2014]

Hello everyone!

We have a new baby (6 months old), and wanted to open up a savings account for her. What kind of options should we consider? We were going to open a general savings account through our bank for her, but we thought maybe there is better options we should consider.

The money that will be deposited into this account will be birthday, holiday, and any gift money she receives from family. We also want to start putting a monthly amount into the account once we have all of our debt paid off. Not sure what that amount will be at this time, and if that will affect the choices we should consider?

Any advice would be appreciated.

Thanks!

[disneysteve]

If the purpose of that money is to fund future educational costs, look into opening a 529 account. You can learn all about those at savingforcollege.com. If, however, you want this to be money that she has access to for whatever once she's old enough, then a savings account is fine. You can set that up at any bank as a custodial account.

Our daughter had both a custodial savings account and a 529. Once she turned 18, we converted the custodial account into an account in her name. Of course, the 529 remained intact and is what we are currently using to pay college expenses (she's a freshman).

[FamilyOfThree2014]

Thanks disneysteve. That is the information I was looking for. I will research the 529 and it looks like doing both of these like you said you did would be the best option.

[disneysteve]

it looks like doing both of these like you said you did would be the best option.

I agree. Money that she receives as a gift is really her money, even if she's only a baby. For you to decide that it should go in a college account isn't really appropriate. I'd do the custodial account for her money and the 529 for your money.

[greenskeeper]

silver....I've been buying 10 silver american eagles for each of my boys since they've been born. Should be a nice gift when they turn 18....what they do with them at that point is up to them.