Savings Plans For Your Child’s Future
Save money for the Future, and Teach Them about It!
Updated April 27, 2023
Saving for your child’s future
Anyone who has kids knows that they are equal parts adorable AND expensive. While we invest so many resources to feed insatiable appetites, clothe growing bodies and fuel developing passions, should we also be thinking ahead?! All signs point to yes.
The BT Moms represent just a small subset of parents who save for their littles. We recently traded secrets and found some common denominators in our savings plans.
BT Mom’s top three ways we save for our kids…
Set aside money each month to save for experiences and trips to enjoy with our children.
Establish custodial savings accounts in our children’s names at our local bank branch.
Start a 529 plan for our individual children, which is a college savings plan that offers tax and financial aid benefits. (529 plans can be used to save and invest for K-12 tuition, in addition to college costs. There are two types of 529 plans: college savings plans and prepaid tuition plans.)*
Teach your child about saving too
There are countless ways that parents and caregivers are already saving for their children. In fact, 80% of BT parents who responded to our survey said they already have set up savings accounts for their kids. Though many of us are clearly intentional about the ways we save for our children, are we intentional about including them in the conversation?
Telling our kids how we are planning for their financial future will encourage them to make smarter decisions with their money as they grow. It can also allay fears about what lies ahead of them, particularly in such predictably unpredictable times.
Start the conversation
Here’s an example on how to start the savings conversation with your kiddos…
“We save as a family for experiences and trips to build special memories together. We open up a savings account in your name to start you on the path to financial freedom. Most importantly, we help fund your education as you grow.”
Looping our littles in on these chats will provide them with essential insight into the many ways parents plan ahead on their behalf. Time to start the conversation? We rolled the 8 ball...and “it is decidedly so." 😜