Q&A: Saving for Baby's Future?

How do I save for future child expenses?
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ByKaitlin Stanford
May 2018
retro illustration of baby
Photo: Getty Images

And now for advice you can’t hear enough: You can never start saving too early. Set up an additional savings account for your child now and make regular cash deposits (no matter how small) at your bank or another local bank with a high interest rate. Opening a savings account is low-risk and by far the safest investment option to provide for your child’s future. Get used to making regular deposits into your child’s account by setting up an automatic deposit feature that will filter a predetermined amount from your account into theirs.

Also, while you should limit your credit card use as much as possible, take time to research credit cards that feature rewards relevant to your needs. For instance, the Toys“R”US & Babies“R”US MasterCard gives you points for dollars spent, which can save you money in the long run with discounts on future purchases — very helpful when it comes to birthday and holiday gifts.

In general, make sure to budget and have an expense plan that you and your partner don’t exceed each month. Remember, your child’s expenses grow as they do! You have to plan accordingly.

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