Money gift for the baby (npr)

Sweets2005

When you get money as a gift for your baby from relatives, do you save it for them? Do you ever spend it *on* them for things they need? I dipped into LOs savings once and felt really bad but it was for clothes for them and I have since "paid them back." What about when they are older? Will you keep it in a savings until a certain age, like 18, when you give it all to them? If at, say 13 years old, they are begging for and just HAVE to have the newest gadget, will you let them use their savings account money that had been saving since they were babies? Just wondering what you all will do!

Heather1979

Before she was born, any money gifts went towards things we needed for her. Now we have checks that we cashed and put in our accounts, and within the next month we are rounding off the amount and creating her own bank account.

My mom did this for me and got CDs, (but interest rates were better then) and it helped me to get a car/college/whatever I wanted when I was older.

SBMBride406

Right now if someone gives me money for him, I put it in his 529 college savings account unless they specifically ask me to buy him a gift from them. He really needs nothing and my very generous parents buy him anything I can't afford, but if I needed something for him, I wouldn't feel bad about using it as long as it was for him.

Thinking ahead...I'm thinking when he is a little older (10 or so), I will start putting half his gift money into a savings account and half in his college savings account, with the purpose of using the savings account money towards a (used) car for him when he gets his license. At least that way, even if its not a ton of money, it will seem like he had to save for it in part, instead of looking like mommy and daddy just forked over all the money for a car for you (although my parents gave me a used car at 16 and I don't think it did me any damage).  

Lavender444

We also have a 529 account for our DD. Any money that comes her way goes into that account and will stay there until college.

As soon as life calms down and DS is out of NICU we'll do the same for him.

TriciaJoy

most of the time, I save it for him. Last Christmas ('08) I did use some Christmas money to buy him some clothes because he really did need some and we were flat broke. I felt weird about it, but it was used FOR him.

We do also get a lot of savings bonds for him, so obviously those are put up. If he gets a small amount, 5, 10 20 bucks, a lot of times I put that in his piggy bank.

As for what he will or won't be allowed to use it for. I don't know yet. I'll have to think on that.

goblue

For now we put half in his savings account and half in his 529.  I think once he is 6 or so we will start to work with him and use the "four jars/pots" approach -

1. fun money (candy, cheap toys)
2. short-term savings (bigger things he wants, something like a bike)
3. long-term savings (college, car)
4. charity

Shayna0182

If it's cash, it goes straight to his piggy bank.  Most of the time dh and I forget it's even there.  If we get a check or gift card then we buy things for him, but we are very careful to make sure all of it is spent on him.