Saving money for a child
Hello Terry! I have a 5 year old who I have successfully started showing and encouraging to save any coins we have or find (i.e., the street, loose change in couch, etc.). I want to save/invest as much money as possible for her future. Where do I begin? I’m afraid if I continue to save cash for her I will end up dipping into it myself. -Thank you, Milly
Terry Says
Ha — I understand the feeling. So start by reading my latest column on gifts for children — There are some great suggestions there. Start with the piggy bank. And do check into the BusyKid.com website to learn about their fantastic app.
And in addition, open a 529 College Savings Account. If you live in Illinois go to BrightStartSavings.com to open the account. You really can’t take it out for any purpose except college expenses, so you won’t be tempted. If you live elsewhere, go to Fidelity or Vanguard and open a 529 through them — you can use any state’s plan. The money grows tax-free for college.
