Saving money for your baby’s future


It is never too soon to start planning and saving for your baby’s future. Even for those parents still at the diapers stage with their little ones, budgeting for what lies ahead is a shrewd move. Whether putting aside money for a college fund, marriage expenses or just a general savings plan to cover all eventualities, it makes sense to begin as early as possible to get the best returns.

Spend less and invest more

Nobody knows what lies in the future, but it gives great peace of mind to know that there are funds in place to provide us with choices. Sometimes, the arrival of babies on the scene can herald a spending frenzy as parents hit the stores for the best stroller that money can buy, the finest toys and all the stuff to kit out the smartest nursery on the block. All this expenditure can add up to a small fortune, and there are some that argue it is not all entirely necessary. All baby wants is love, regular feeds and somewhere warm and safe –it doesn’t really matter to them if the stroller is the top of the range model or the baby clothes are all by top designers.

In these tighter economic times, parents are being forced to re-think their approach. Saving money on baby equipment in the here and now means there will be more to put in the bank for the baby’s future. By their very nature baby clothes and equipment are not used for all that long because their users grow out of them. Often expensive baby wear and gear is barely used. Smart parents consider buying second-hand or recycled baby care goods and benefit from considerable cost savings.

Savings choices

For American kids, going to college is a significant expense. Those lucky enough to get scholarships or other financial aid are in the minority and it is very often the bank of mom and dad that comes to the rescue. Fortunately there are ways and means of maximizing the money put away for college. Parents should be pro-active about finding out the best investment vehicles for their hard-earned cash. Check out the long-term saving accounts and competitive CD rates available at With a range of flexible accounts offering terms of between three months and ten years, smart savers can find a good home for their investments. Other parents may choose to look into the tax efficient 529 saving plans available in state and see how they could be of benefit.

Once a savings plan has been decided upon, be disciplined about making payments. Saving regular amounts over a long-term will attract the best interest rates and returns; by the time baby has reached adulthood, there should be a pot of money to fund a fine college education. By setting up regular deductions from a checking account into an educational savings account there is minimal hassle and payments are consistent.

Right now, college may seem like a million miles away in baby’s distant future, but an educational savings fund should be seen as a long-term investment that will pay out handsomely in years to come.

Disclosure: All opinions are my own and may differ from yours. This is a sponsored post and compensation was received.


  1. Janet Carpenter says

    Can grandparents do this also? Can one child have more than one account, one from parents and one from grandparents?

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