Cash gifts given to very young children

What are you doing with money gifts given to young children? Mine is too young to “save or spend” his own money Sometimes I put it in his 529 account but this year the amount was very minimal.... sometimes I’ve used it to buy kid supplies and needs. Wondering what others do with cash given to kids 5 and under.

  • Amanda
    Dec 28

    How young is your child? I think that if the amount isn’t worth putting into the 529, then purchasing a toy/book/activity for your child to use is a great idea! You could even use it to fund an outing if you don’t want to purchase a physical toy.

  • Ivana
    Dec 28

    Toys and books for sure, but if they’ve gotten plenty over the holidays anyway I’ve definitely used it on clothing especially winter gear. They go through clothes so fast and it gets costly!

  • Kendall
    Dec 28

    My son has a little piggy bank, if it’s just a couple bucks I just toss it in there

  • Catherine
    Dec 28

    We have a kiddie savings account and a couple of savings bonds for just this reason. The benefit is that the money is accessible when she needs or wants it as she gets older, and it is not tied to a college fund. Money can be added at any time in any amount.

  • Jackie
    Dec 29

    There is no such thing as your child being “to young” to save. Even if it’s $20 add for a single holiday/birthday it ALL adds up. I wish my parents had done that for me when I was growing up. We opened an account for my daughter after her first Christmas (she is now 18mo) and she has almost $1500!! Our thinking is she will use this money towards a car, school, wedding or home when she is older unless something comes up before hand

  • Laura
    Dec 29

    No amount is too small to add to a 529. I think my husband deposits it into her savings account and then transfers to 529 at some point.

  • anonymous mom
    Dec 29

    I do what my parents did...which was any cash gift given to me from family/friends was doubled by my parents and put into a savings account. Every quarter, they’d take 75% and put it into a 529 for me and leave the rest in savings for me to build up and learn how to manage money. I did have one great aunt who always gave savings bonds. They still exist!!! I recently found the envelope of bonds in my bedroom closet when I was home visiting. I cashed them in and it ended up being worth a LOT!!! She passed when I was 6 or 7 and bought $50-100 bonds for me for my birthday and Christmas and that still resulted in nearly $3K after all this time!!! Woooohooooo!!!!! Of course, I’m a mom now and what’s mine is my daughters...so all that sweet cash went right into her 529🙄.

  • Anonymous
    Dec 29

    I have a joint account for my daughter that has my name on it and deposit into there for her future needs. She’ll learn about it when she’s ready. She’s only 16m now but has more money than I do. Ha. The grandparents have a 529 that they add to for holidays.

  • Ali
    Dec 31

    Once the kids get a decent amount in their piggy banks, I put it in savings. Anything over $50 is transferred into their 529... it all adds up, especially if you deposit it when they are under 5...

  • Trisha
    Jan 02

    Seriously, set up a savings account for your child. Every $20 counts! We saved all piggy bank proceeds, and holiday gifts from birth...when my twins turned 17, each had funds for their first car. They weren't complaining about my taking their money then! Some of my older relatives bought them bonds....there are rules concerning when these can be cashed in, and they vary according to date of purchase. I would not buy Bonds today; it takes too long for them to reach maturity.

  • Anonymous
    Jan 02

    We have a 529 account. And a regular kids savings account. I wish my parents had saved money up through the years. But every little bit helps.

  • Stacey
    Jan 09

    My 2 year old has a savings account. Any money he gets we put in there. He has a ton saved since he doesn’t spend any yet.