Custodial or savings? It really depends on what works best for your family. While you and your child will have access to money in a savings account, any money put into a custodial account will be considered a gift and must be used for the benefit of the child. When making an appointment to open an account, talk about what options would be best for you and your children.
If you’re opening an account for a minor, you will be opening a joint account in your name. Talk to your bank about what happens to the account after your child turns 18, such as changing fee waivers, so you’re prepared for the next steps.
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Before going to the bank, gather your social security numbers and birth certificates.
Set up text and email alerts to monitor spending.
Get your kid in the habit of checking their expenses every month, so they learn not to overdraft their account accidentally —and to check for account fraud.
Research interest rates to see which savings account gives you the best bang for your buck.
