Newsroom – Money Saving Tips for Babies
Money Saving Tips for Babies
Being blessed with a new baby is certainly a life changing experience. Having a new young life completely dependent on you is simultaneously joyous and overwhelming. Just when it seems you’ve prepared for everything, you discover a multitude of scenarios you never could have anticipated.
As the world changes around you and you try to be the best parent you can be; one thing to never forget is to have a sense of urgency. Early on, it seems like your little one will be little forever (particularly at two AM during a sleepless night). However, your bundle of joy is growing, learning, and progressing every single day. There are many things that feel as though they can be addressed in the future. The truth is, many things simply can’t wait.
One such element that needs immediate attention is saving. According to collegecalc.org, the estimated annual cost for a four year school in 2032 will be $110,674.46. As the father of a nine month old, this is a sobering revelation. Here at Trademark, we have a few options for saving for your baby’s coming years.
The first step is to open a Primary Share account for your baby. With just a birth certificate, social security card, completed membership application, and $5, you can open an account and your baby is a member of Trademark for life. Setting your little one up with a savings account and keeping him or her active in their own banking activities as they grow, will help establish a proactive approach to savings and promote financial literacy. Education like this is invaluable.
Once the Primary Share is open, a fantastic product offered by Trademark is the Youth Certificate. These are share certificates with six month or one year terms and maintain the same dividend rates as standard certificates. However, these special certificates require only a $25 minimum balance and are not subject to any early withdrawal penalties. It’s a great way to help your child save.
For purely educational saving, an Educational Savings Account IRA can be established. This IRA mirrors the tax-savings benefits of a standard IRA, but is earmarked for your baby’s education. It’s a fantastic method of establishing a good base to help pay for that looming college tuition.
Obviously, none of these options will grow without deposits. Parents can start building their baby’s nest eggs immediately. Here are a few suggestions:
- Deposit a few dollars from each paycheck to your baby’s account. This can even be set up as an automatic transfer every time you get paid.
- Ask friends and relatives to give cash for Christmas and birthday gifts.
- Deposit bottle return money and loose change.
Whatever method works for you, make sure you do it. Raising a financially literate, responsible, independent child is a goal every parent should strive for. What better time to start, then right from the get go? Your baby will thank you for it later.