Mom Shares a Simple Money Tip That Could Take the Stress Out of Paying for Teens' Expenses

The post inspired a conversation about a variety of simple ways parents can save as their kids grow up.

An image of a woman holding a credit card.
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Finding ways to save and teach your kids about finances can feel like a never-ending process. But small steps can add up to concrete results, as one parent on Reddit recently pointed out in a post titled, "Something I started 10 years ago, and really glad I did."

u/queenkik shared that she has five kids aged 18, 16, 14, 13, and 9, and about 10 years ago, she decided to open bank accounts under her name for each one of them. "I would put a little amount every month—between $5 to $25 a month/each—and keep it there," wrote the original poster (OP).

The Redditor wrote that her intention was to stash away funds that would be there for her kids as they grew up and had more expenses as teens.

"It has proven to be an awesome strategy, since when the kids want new gadgets, trips with friends, etc, we have the money saved up—worry-free," shared the OP, who concluded that she was sharing the tip with other parents—especially of big families—because the small act, "if done consistently, can make a big difference and reduce stress."

Parents applauded the OP, chiming in with their own experiences and tips for saving up over time for their kids. u/idkmanijdk wrote, "My son is almost 1. I've just been making small recurring deposits for a few months, but I'm planning to up it to $150 in 2022. Back of the envelope math says $150x 26 paychecks x 17 more years = $66,300 for the dude when he's 18. Should be a really good start for him in addition to his college fund. And no, we're not rich at all."

And u/Warlock_Nanab shared, "I put money each paycheck away. Check with your bank about accounts for minors. My credit union has a start up saving account that pays 5% interest on the first $1K in their account. My first kid earns $4 a month since I'm over the threshold, and my second is well on his way. They are 2 years old and 3 months old."

Another Redditor, u/The-Wandering-Kiwi, wrote, "We did this for our daughter she's 19, and there's $20K in there."

Some parents offered alternate perspectives, like u/glucosa86 who shared, "We had been doing this for a while, but someone pointed out that instead of putting money into a savings account that gets basically no return, it'd be more sensible to use that money (which is really our money) to pay down our debts, since the interest you pay on a loan is a lot higher than the interest you make on a savings account."

Still, the Redditor noted, "Each kid does have their own savings account though, and any money they receive for birthdays or Christmases goes in there because that's their money, not our money. [But] by paying off our debts sooner, we will have more money up front to pay for things they need."

The conversation proves that from stocks to special college savings accounts, like a 529 plan, there are a bevy of ways to stash cash away for your kids' futures. But no matter which route you choose to go, all of these parents' suggestions could lead to less stress and more financial freedom for everyone in the family.

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