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10 Smart Ways to Save Money for Kids

No doubt, kids are a blessing, but raising them is both challenging and rewarding — and let’s be very honest, it’s expensive as well. According to the Brookings Institution, raising a child to age 18 can cost around $310,605, not including college.

For us, that’s a lot of money.Expenses can mount up rapidly, from tuition to school fees.but starting to save early for our children, even just a little, can really add up over time.

We can accomplish the goal of creating a financial safety net with a well-thought-out plan.

1. Start with a Goal-Oriented Mindset

Before you start saving for kids, always ask yourself:

Whether it’s a bank account or a long-term investment, if you have a clear goal in mind, it helps you choose the best way to save for your kids. And knowing why you’re saving will keep you consistent when life gets unpredictable.

2. Open a Children’s Savings Account

The first and easiest step in saving for kids is to open a dedicated savings account in their name. This creates a clear separation between your money and theirs.

Always look for accounts with good interest rates and no or low fees. Some banks offer ‘junior’ or ‘youth’ savings accounts designed specifically for children.

3. Automate Monthly Savings for Kids

This is my go-to technique for my kids, and I wish you would try it too — set up an automatic transfer from your main account to your child’s savings every month.

Even a small amount adds up over time. For example, saving just $50/month from birth until age 18 could grow to over $20,000, assuming modest interest.

Automation removes the pressure of “remembering” to save — it just happens.

4. Explore High-Interest Saving Options

Traditional savings accounts are safe but may not offer the best returns. For better results, you can explore:

Before choosing, always compare interest rates and lock-in periods. The goal is to strike a balance between security and growth.