Managing Cash Gifts to Kids?

[ajm0711]

We just currently have a savings account that all cash gifts go into, which isn't a lot as she mostly gets physical gifts.

However this thread reminded me to start a 529 for her. I'm going to do that during her nap today.

[Cherhorowitz]

Re: the investment account

MH likes to say that "maybe one day he will buy a girl a ring with that money" because he sold a few of his stocks to buy my ring. Also, when we were first starting out, no one wanted to give us an apt in NY and we were able to use the account to pay for an apartment up front. MH also did dumb stuff like selling some blue chip stocks right away rather than sitting on them because he saw what they were worth. But, for the most part, it taught him about the market and he was able to take the account and grow it quite a bit. We're in no position to give our kid a trust fund or anything, but hopefully it's a little something he can use when he needs it and teach him about investing. Or he will blow it all immediately.

Either or.

[Deleted]

My SIL's H's parents did the investment account for him, too. It taught him so much about money and saving and investing. He had a very nice sized chunk of money in that account coming out of college. And they did a lot of matching funds to encourage him to save.

[fancynewbeesly]

Reese is 5 and has no concept of money. Infact DH's uncle for Christmas gave her cash; and she piped up: "what do I need money for? I don't buy anything"

Which is true. Usually she has enough gift cards to cover any wants.

Last year any cash we put in a saving account--probably less than 100, we used it for her in Disney.