Do you have a savings account for your DC? - Page 2

[velochic]

Originally Posted by Annikate

Don't want to hijack, but does anyone have any recent experience w/savings bonds?

Dh is not really into the 529 plans because he doesn't really want someone else making money off of ours. He wonders why we ought to park it there when we can just save here in a tin can or something. (Not really but ykwim.)

I feel so investment challenged!

You can tell your husband that he can be SURE that the government is MAKING MONEY off of the savings bonds!

He is loaning his money to the federal government.

EE bonds gain you only 2.325% annualized returns. You can put your money in just about ANYTHING else and get better returns.

No offense, but your husband is being a bit foolish because even if you put your money in a tin can, someone makes money off of it. It's called inflation.

[velochic]

Originally Posted by melissel

I totally thought we were the only ones who did the "pocket change for college savings" thing

Although we do save pocket change, we're not investing it for college (I was just saying that if you have nothing else to save for college, you can at least do that).

We're going to give the lump sum to dd when she turns 18 to do something really fun the summer before she goes off to college. I can't wait to give her this big check and tell her... "See, pennies add up!!"

[Annikate]

whoa whoa! I was only being facetious when I said that about dh. My hubby is a highly educated, very smart man. We joke about the tin can thing or the money between the mattress thing but it's only a joke.

I really just wanted to get your opinions on savings bonds.. . .

[velochic]

Originally Posted by Annikate

whoa whoa! I was only being facetious when I said that about dh. My hubby is a highly educated, very smart man. We joke about the tin can thing or the money between the mattress thing but it's only a joke.

I really just wanted to get your opinions on savings bonds.. . .

Sorry... You'd be surprised how many people really do think they should put their money under the mattress. (My father being one of them.)

I don't have a high opinion of EE savings bonds. Their yield so extremely small, and the maturity period is just ridiculous - 30 years!

If you want to stay with bonds, there are many other choices - corporate issued bonds, municipal bonds and another government bond called TIPS (Treasury Inflation Protected Securities). TIPS' rates are based on the CPI (Consumer Price Index), so as inflation goes up, so do your returns. If you want to stick with government issued bonds, this would be a better choice than the EE bonds, IMHO.

[tempestjewel]

We just have a savings account for DD at our credit union. It only has a $5 minimum balance and no fees. We put all of her gift money into it she got when she was born (around $200).

Money is too tight right now to sock away for college, but its something I'll read into in the next few years... *sigh*

[jaidymama]

We don't have anything more than a savings account right now that earns interest... when it reaches 1000 we're going to put that into a higher interest account perhaps a CD... I'll have to look into these 529 plans. But we do put any money given to him into this account and we put all of our change from the change jar into this account. I think we'll do it this way until our next child comes along... then that child will get the change from the jar... but I guess we might not have as much change later on ???? who knows.

I do think it's a good idea to put money aside for your child though.... no matter what type of account (just as long as you have specifications what it can be used for... like health reasons or school or a car or a trip or when it can be used... like at age 18 or something).

[Herausgeber]

As far as budgeting for savings money away for the kiddos, though, in my household that comes after we've maxed out retirement savings for ourselves, but before we put money into any non-tax-advantaged accounts or paying down low-interest debt.

[kathirynne]

Yep

I started a savings account for my children ages ago. I try to make regular deposits into it, but lately money has been too tight for that.

I do make them put at least 1/2 of all the money they receive (as gifts or as payment for work) into the account. (And since it's a joint account with me, they have to have my signature to withdraw any. )

[~PurityLake~]

I'm proud to say, following this year's PFD, my 2 yr old and 1 yr old daughter's now have a combined savings of over $4,500 !!!

[normajean]

We divide up all our change between the kids piggy banks. When that is full, we deposit in their accounts. Our bank requires an opening deposit of $25 for a kids account, and for every $10 they deposit they get a toy dinosaur, which is a fun incentive for them to deposit birthday money, etc.

[mrskennedy]

No. DS's money goes into my savings account, where it earns more interest being combined with mine. But he's only 7MO. When he's older we'll open an act. for him so he learns to save, etc.

[~PurityLake~]

That's why I combined my daughter's savings accounts.
Each year, I roll it into a CD that earns 5.23% interest.
It goes back in the savings when the CD expires, around the time the yearly PFD is DD into their savings, then I roll that larger amount back into a new CD.

[~PurityLake~]

They'd better appreciate it when they're 18, or whatever age they move out, and realize they're richer than I've ever been.

I want them to have a head start in life, unlike I did.

[my2girlz]

I currently have their money put into their ING accounts weekly, but I'm planning on checking out the 529 plan.