When a baby is born, there's all sorts of excitement buzzing through the air.
A new life! Hooray! It's a cause for celebration.
Gifts pour in. And true, sometimes they are needed, while others are immediately exchanged or forgotten in a closet, collecting dust.
A gift that will always be a smart idea and will NEVER collect dust, is a UGMA investment account. You might be thinking, what? An investment account? How boring!
But it's truly not.
Starting an investment account for a new baby is the right move, and I have many reasons why.
1. When the baby reaches adulthood, they'll already have money to begin their life. Need college money? It'll be there. Skipping college and going into a trade? Cash is available. Taking a gap year? The trip is funded!
2. The investment accounts don't require a bunch of money to open. You might be thinking, "Who has $100 or more to spare these days?" You're in luck! Many can start with as low as $20.
3. Cash, stocks, and bonds are able to be sent into the account. Kids don't need more toys. They'll always be pleased with money, I promise. Toys wind up broken and all over the house. If you want to keep a clean home, an investment account is the way to go. Family members and friends will be grateful if you're just like, "Donate to this account instead of going to crowded stores to purchase something my toddler might not even LIKE."
4. Money grows each month. The more that is put in, the faster the account expands. It always is a wonderful feeling to see numbers go up. You'll feel a peace of mind knowing your little one will have cash on hand.
5. Yes, you CAN get money out before the children are adults without penalty. Life happens and children are expensive. So long as they money is proven to be for the child, you will not be hit with fees.
So yes. forgo the STUFF after a baby is born and open an investment account. Time flies by and before you know it, that baby will be a fully grown adult. Surprising them with a chunk of money will be welcome and celebrated.
So will you be starting an investment account for your child or one in your life?
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Yes, this is SO smart! Starting an investment account when a baby is young gives that money so much time to grow, even if you can only contribute a little at a time. I love the idea of thinking beyond the cute baby gifts and giving a child something that could actually help with their future.
ReplyDeleteIt is indeed an excellent choice to save funds for our children's future. And when the time comes, when they are in their right age, they can have access to those funds we saved for them. A brighter future for them as a result.
ReplyDeleteThat is a super smart decision. If you start small when they're small, that money will add up to quite a bite over time and make it easier for them to follow their dreams later.
ReplyDeleteI can't think of a better gift to give your child than that of security. Starting an account like this when they're young gives them such a big leg up later on.
ReplyDeleteI have so many videos saved on Instagram about investment banking for children in both Canada and Italy, because I want to be well prepared for when I have my kids! I think it's such an important thing, and can really help set your little ones up for life.
ReplyDeleteI do love this idea for gifts. Now that I have 2 in college, this would benefit me.
ReplyDeleteSuch a great investment idea. Even small contributions from birthdays and special occasions can become something meaningful as the child grows. Great information for new parents!
ReplyDeleteThere is no question that this is a forward-thinking idea. And as far as gifts go, what a blessing it would be! Hardly anyone has this vision so early, which is why I love that you covered it. It's suprising how the stash can grow over time.
ReplyDeleteI really wish that I had the funds to create accounts for my kids. But I was always not in a position to do so. But at the same token my kids had to work for what they have just like I did. I paid for my own college. It wasn’t easy but I managed.
ReplyDeleteMy husband and I did this. We started savings accounts for our boys when they were born and we transfer money into them monthly. We don't miss a little bit every month, but it really adds up!
ReplyDeleteI really like the idea of starting an investment account for a new baby. It’s such a thoughtful way to turn a small beginning into something meaningful for their future.
ReplyDeleteSetting up a savings account for a baby really is a great idea. With the way things are going with the cost of everything having a savings they can dip into when they are older will be very helpful for them.
ReplyDeleteI liked how you reframed gifting around future usefulness without making baby presents seem foolish or meaningless. Thank you for talking about it! Such an important thing to do these days.
ReplyDeleteThis is definitely an important thing that you can do for your kids and family. Unfortunately we never did this and the kids are stuck with major college costs.
ReplyDeleteAn investment account may not seem like the most exciting gift for a baby, but trust me, she’ll appreciate it later! Instead of toys and clothes they’ll quickly outgrow, especially before they start school, put that money toward their future. Less stuff now, more opportunity later.
ReplyDeleteThanks and nice photo :) ! Starting at twenty dollars also makes the idea less intimidating than it sounds.
ReplyDeleteWe actually have one for each of our kids because we’ve always believed that it’s never too early to start investing for their future. We put the money they receive as gifts into their accounts, and hopefully, when they’re older, they’ll appreciate that we started these for them early on. It’s something we’re happy to do now that we know it can benefit them in the future.
ReplyDeleteThis is such a smart point! Kids receive so many toys that end up broken or cluttering the house, so an investment account is truly a long-lasting gift.
ReplyDeleteEverything Enchanting 🩷