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Money given to babies when born Lock Rss

Just wondering what people generally do with the money that is given to their babies when born.

We opened a bank account to put the money we had been given into and I used the money from her great grandad to go towards her hands and feet sculptures. I have been bidding on eBAY to get her some more toys and is it wrong to use her money for them? I haven't has yet and prob won't because I feel her money should stay in her bank account until she is old enough to decide what she wants to do with it, but then I also wonder is it wrong to use some for some extra toys? (We are going to be depositing money into her account each week)

What do others think?
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Hi Gizmo,
I think so long as you are spending the money on her for enjoyable things it is fine! I wouldn't use it to buy everyday things like nappies, formula, food etc. We have a savings for our little one that all money presents go into, but haven't had to use any so far. We have been given a few small amounts though that I have bought her a toy or book with.

DD1 July 2004 DD2 August 2007 DS September 2009

Hi,
We have opened a dollarmites account with the commonwealth bank for our daughter, the only time we have withdrawn any money from her account was prior to her naming day where we took out under $20 to pay for a cake knife we wanted her to use for that and every birthday, we had no problem bying it ourselves but had been told of a old wives tale that it may cut the friendship if you give a knife as a gift, so to play it safe it is a knife she has paid for.
I am not sure as to what bank anybody else is going through for their children but i just wanted to let anybody who has a dollarmites account to be aware that interest rate is something like 0.01%, but if you make a deposit which can be as little as $1 each month without a withdrawral they then receive the bonus interest rate of 2.75% (i think), i at first didnt realise and would not always be able to get to the bank, but now i make sure i deposit money at least once a month.
........................................
Maddismummy
Hi Gizmo

When Lachlan was born we received only gifts.
When I went back to work when Lachlan was 4 months old, we opened an account for him with Savings and Loans credit union, offers great interest and bonus interest, plus we would have to have a pretty good reason for the bank why we needed to use his money before we would be allowed to touch it - good rules if you ask me. Each fortnight $25 of my pay goes into his account. Plus his grandparents contribute towards the account when they can, so he currently has a nice tidy sum.
We don't plan on telling Lachlan that we are saving this money for him, we've forward projected what he should have in the account when he is 21 and then we shall give it to him as a 21st birthday present, however it'll come with instructions on how we want to see him use it, ie tertiary studies, purchase house.
Personally, my hubby & I are on good salaries, so we can afford to buy Lachlan stuff with our own money, rather than dipping into his account. Its not like you need to buy toys or clothes for them everyday. But this is acceptable for our circumstances, whereas everyone else has a completely different situation from us, so what works for us won't work for everyone.

Michelle,SA, Lachlan & Holly

Hi again Gizmo,
I think if it is money that has been given to your child as a present then it is fine to spend it on toys and stuff, then you can tell the person who gave the money to them what you bought, unless they specify that they want it to go into a savings account for her. However, the money that you are putting away for her each week isn't really a gift, its more of a future savings for her, so I would feel it would be wrong to spend that on "luxury" items!
We are not going to promise our girl that she is getting the money in her account - never know may need it for a medical emergency for her one day, and lets face it scraping together a large sum doesn't come easy. We won't be telling her at all, until the time comes that we feel she needs the money or can use it resposibly. It may even turn into a college fund for her!

DD1 July 2004 DD2 August 2007 DS September 2009

I never recieved any money when my son was born, so have never had to think about what to do with it. But I do put $10 p/f into my son's account, but I use this money to buy new clothes when he needs them, usually at the start of winter/summer. I have also just started and education account for him. I put $10 p/f into that account so that when he starts school I should have enough for books/uniforms etc...

qld,3yr old boy

Hi,

I recieved the $3000 government bonus and did set up an account for my daughter which recieves 5.6% interest, only thing is it is an online account which suits us fine. we add $20 fortnightly and when opened we also added $500 to it.

I used a savings calculator which you can find online and found out that with an initial deposit of $3500 and the $20 we put in plus the $44 we get for family allowance fortnightly she will have $73000 when she is 21.

Nice incentive to keep it going. Wish my parents were able to that for me!
Hello. My daughter Megan has more money in her account than we do! And at 16months that is fairly impressive! It is because of this and the fact that money goes in there every week that I have recently decided to use some to buy her her first big bed! I think it is ok to use small amounts but only for items that your child needs. And as long as they have something for when they are older.

Krystal, WA, daughter Megan 16months

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