newborn baby's feet being held by a parent's hand

Your Baby's Financial Journey Starts Here

The First Step in Your Baby’s Financial Journey

Spare change? Drop it in your child’s savings account. Birthday money? Set it aside. Contrary to belief, you don’t have to have a ton of money to begin saving for your child. For many parents, starting a savings account for their baby isn’t a priority. However, saving for your child as early as possible will start them off on the right financial foot. In fact, kids with bank accounts are 7x more likely to graduate college.

Here are 3 tips to set them up for success early.

1. Decide on an amount to save and add it to your budget

Choose any amount no matter how small and start saving early. You can always adjust the amount later. Here are examples of how the money will accumulate over 18 years if you start saving at the newborn stage.

$5 x 52 weeks x 18 years = $4,680
$15 x 52 weeks x 18 years = $14,040

2. Automate your saving

When you’ve decided on an amount, set it up to automatically transfer every week or month. Flatwater Bank’s process for this is simple and can done through our mobile app. Setting up automated payments helps make saving for your child a priority.

3. Use the account as a teaching tool

If you want the money to accumulate, it is important that you do not touch it. However, when your child gets older, they may want to withdraw money for some of their wants. In this case, use the savings account as an educational tool. For larger purchases, save using a clear piggy bank to show them how their money adds up. When they’ve saved enough, count out the amount they need with them and make a trip to the bank to deposit the rest into their savings account.


Ready to Make the First Step?

Opening a savings account for your newborn works the same as opening an account for yourself. Give us a call anytime and one of our customer service representatives will help you get started.