One of the things I’m really excited about for our baby girl is setting up savings and investment accounts. It’s so annoying that I have to wait until she’s born to get her social security number and get these accounts going in earnest.
Aside from a normal college savings account, I’m planning on opening a custodial investment account for her. This will allow me to drop a bit of money into the stock market on her behalf. I’m planning on just buying Vanguard funds and pretty secure stocks.And when she turns 18 or 21, it will become her account to manage.
And to make this “easy,” I’m planning on just automatically transferring money to these accounts each week or each paycheck. I do this for myself already and it’s very handy.
My family couldn’t afford to sock money away for me like this when I was growing up, but I’ve always heard about the power of compounding interests and the value of investments over time. It’s thrilling to think of how this will pay off for her!