Secret Savings Account for Your Child

Having kids can be a financial situation for any family. It could also be agreed by most families that just because a child moves out does not mean the ties are cut through money either. Parents are always trying to come up with ways to be prepared for now and for the future. As an aunt to three young children I find myself trying to figure out ways to prepare things for them in the future now.

My latest idea, which could be the smartest, is basically a savings account. You might find yourself asking "Why a savings account? What makes that different than any other time?" Well my answer to that is because this will be a savings account they will not know about. If you are a parent that has children who are on there own now you will know what I mean when they come and ask "May I borrow $40 for groceries?" This economy is hard for everyone and this could be a solution to get people to start saving and also may help out the future generations.

What could be done for the children is to open a secret type savings account for the child. When they come and ask mom or dad for money then you can take the money from the account. This way the child still things they are borrowing money from mom and dad. This puts no strain on the parents in trying to make sure the child has what they need. Most kids also know that they must repay mom and dad in order to borrow again in the future. So when they repay the money it goes right back into their account.

With this situation, the child is none the wiser about where the money came from, they money will be there again, and maybe depending on the situation the child can understand some money management. It is a great idea that we are starting in our family and could be a financial fix to a lot of problems for families in the future.

This could really be done in any family because if a family only puts back $5 dollars a month over a total of 18 years then the child could have 1080. This would for sure be money that the child could use in the future and not put the parents in any some sort of financial bind. Think it through and then stop by a local bank and see what kind of plans they might offer for a savings account. Many banks now offer a child's savings account.