photo credit: killrbeez
You just found out you’re pregnant and you can’t wait to start building a family and loving new room for your baby. You might be thinking about putting together a baby registry at Babies R Us, Target, Walmart or another department store so friends and family can help celebrate your new baby. Thoughts of the many outfits you need for a newborn, crib, and changing table might give you images of excitement as you imaging caring for little junior. Maybe you’ve helped a friend shop before and the thought of picking out everything from newborn bottles to a new car seat make you lie awake at night with excitement. Have you thought to add a savings account or stock investment to your baby registry?
Picking out newborn outfits and infant bottles can be exciting for new parents, but so is the prospect of starting your child off with a solid financial footing. Wouldn’t it be nice if you could simply sign-up for an investment account the same way you purchase baby clothes or baby toys? Well, it basically is that simple. Many companies like Sharebuilder offer the ability to start an investment account for your child. You can open up a custodial account for your child in a few minutes and get them started investing earlier than you did.
The baby registry is a way for friends and family to celebrate the birth of your new baby. Parents, grandparents, and friends review your baby registry and buy items that will help you build a secure and safe environment for your little one. It’s been a few years, but here’s some of the items I remember from our baby registry:
1. Car Seat
2. Changing table
3. Crib
4. Baby bottles
5. Newborn clothes
6. Diaper champ
7. Diapers
8. Baby monitor
9. Blankets
10. Baby toys
I’ve probably missed at least 20 items, but thought I would highlight some of the most important above. All of these items are so important for a baby to prosper and thrive, so shouldn’t we also consider adding a savings account to the gift list? Imagine what this passive income opportunity could do for your new child.
With the help of my parents, I opened a 529 college saving account within a few months of my first child’s birth. Number two took a few years later, although I have since made up for delay and added additional funds. Any future cash gifts can be added directly to the 529 accounts. Having your bank account information added to your 529 account can also make the process so much easier. Automate your investments and you’ll find one less excuse to start investing as it will allow you to focus your efforts on building wealth and playing with your family.
If you don’t have the funds available to invest in stocks, consider opening up a savings account for your child so friends and family can help them save money. You might be surprised to find out that grandparents, aunts and uncles, and even friends would be interested in helping your baby start a savings account. Even an ING savings account will allow compound interest to grow over time. Imagine how much money your child could earn if you opened a new savings account within the first few months of birth. The point is to get started early and help them save money on a regular basis. Once your child’s savings account is established you can deposit any future birthday checks into the account and watch them get excited with they see the earnings grow.
What was your favorite gift from your baby registry?
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That is a great suggestion. I never thought of doing that before. Putting money in a savings account is better than getting products you will never use or duplicates.
I am pregnant…10 weeks. I opened a new savings account almost immediately after we found out and started stocking money away. Not for the kid but for us and for the expenses I know will come up.
I have no intention of saving our money for our kid to use for college. He/She will get a job and scholarships or join the military.
I opened up a 529 for my son before his first Christmas and encouraged grandparents/aunts/uncles to consider it rather than flooding him with toys he didn’t need. If they seemed interested, I shared the process for contributing directly to that account. Most of them thought it was a great idea. The rest gave him toys.
That said, I think this would be really inappropriate to ask for an investment-type gift for a baby shower. People want to buy necessary stuff and/or cute stuff for baby showers; that’s kind of the whole idea. And even though I personally far prefer to get practical gifts — like gift cards or diapers — at showers, an investment vehicle is taking that a bit far. (Don’t get me wrong — I’d be thrilled if someone came up with this idea on their own. But I’d NEVER suggest it. It just seems crass since it’s outside the scope of baby care essentials.)
My favorite shower gifts were handmade blankets (personal), carseats (practical), and a Willie Nelson onesie (just plain cool).
Not a bad idea. I’ve already done my baby registry but hadn’t thought about starting a savings account this soon. Thanks!
That is a fantastic idea! It would be great to use for even Christmas or Birthday gifts.