What to do with kids’ money?

[Anonymous]

My kids each have a several hundred dollars in 1’s and 5’s. The oldest is 5. What do you do with kid money? I know they’ll keep getting money and when they’re older then I would let them spend within reason. We give them $20 when we go to Disney for souvenirs, sometimes they buy ice cream and each spends $5 at dollar tree/target for siblings birthdays. Currently there’s not a good solution and they get into the cash in their rooms. Dh wanted to open bank accounts for them, but that’s not a thing anymore right? I know my bank charges a monthly fee if you don’t have direct deposit.
A- put it in their 529s or half in their 529s
B- put it in my bank and keep track for the kids how much is in there.
C- trade it in for $20s and keep it in my own safe.

[Anonymous]

We don’t pay a monthly fee for our kids’ accounts. I suspect most banks have kids accounts without a fee. We add $50 per month (partially from their allowance and we make up the rest) and when they turn 18, the bank will deposit a bonus $1000 for them. That’s at Citizens Bank.

[Anonymous]

Look for a youth account.

[Anonymous]

Credit unions usually have free accounts, especially for students.

[Anonymous]

529

[Anonymous]

Stocks ofcourse. They are young, the stocks are down and the amount you are talking about is very small.
Let them have some cash in hand to learn about prices in stores, giving change, wants/needs, and overall cost of things. Can you imagine when they discovering that you bought them 10 apple shares when they were very young and now, at 8-10, they can see the price and how much it has grown if it has. If it hasn't, still a learning moment. Buy a few things and see which has grown the most and why.
Always amazes me that people don't use money to learn about money. Instead, they stick it into some far away account to sit and rot away so they can tell the world how their kid has savings account. 1980s is calling?
Again, use money to learn about money.You could DCA $50 for them every month til they are 10. Then talk how you all got there and how the things you bought fared.

[Anonymous]

Another vote for 529!

[Anonymous]

Give them their own accounts and let them learn how to manage their own money. This ain’t a large amount so that’s a likely better use than putting it in a. 529.