Savings Account for Step Kids? Good idea or Bad?
I've often played with the idea of opening a savings account for my SD5. I was thinking it would be nice for her, if by some miracle, she were to ever attend college (long story, check out my blogs for why it might be a "miracle). BM would never have anything saved for SD. I don't see her ever being stable enough to do this.
I grew up having a savings account that my grandparent's opened for me. They put money into it and they had to be with me to 'approve' any withdrawls.
I was thinking that IF SD goes to college she could have access to the account when she's 18. The money would have to go directly to school related expenses (ie: books, room and board, tuition, etc). If she does NOT go to college, I was thinking that she wouldn't get it until she's 25 and once she's that age she could do whatever she wanted with it. I figured 25 because hopefully all that adolescent immaturity would be "done" and she may be able to spend any money that is saved for her, wisely.
What do you think of this? Have any of you ever opened a savings account for skids? What other rules or parameters do you think is important to consider?
When I have my own children they will have a savings account probably since birth. I want to give my SD the same opportunities, because lord knows, she will need the help.
WOW, I think this is a great
WOW, I think this is a great idea.
My stepdad and mom did this for us and for his daugther. But, his daughter's mom found out about it and would always put hints in his ear that she needed money out of savings account to use for the daughter. Even though he paid child support to the mom. She was very greedy and tried on numerous occasions to get the daughter to get the money out.
So, I guess, with that being said, make sure you have all your t's crossed and your i's dotted. If you set rules for it to be for college or 25 years of age then I highly reccommend it.
Hope this helped...somewhat!
That is exactly what I'm
That is exactly what I'm afraid of! I don't want SD to be able to get money out unless I'm there because I don't want her mom to have ANY access to it (that's also why if she doesn't go to college that she would have to wait until she's 25 and hopefully NOT Living with her mother).
The one good thing is, if BM and SD continue to live where they live, the closest branch of my bank to them is like a 100 miles away. So not super easy access, but BM would drain it if given a chance.
You might be better off doing
You might be better off doing a 529 plan for her. If it's just a regular savings account - once she turns 18, she gets it if her name is on it. Another idea would be to open the account in your name only then you would have some control over it if needed.
if you decide to, i would
if you decide to, i would definitely open it in YOUR name -- she's 5 -- a LOT can change.... there's a good chance you may a have a change of heart --- then you'll have some serious vacation money stashed.
good point. I'm a little
good point. I'm a little afraid if I open it in my name though that I'll spend it in a moment of weakness on clothes/shoes/emergencies etc.
start saving and see what
start saving and see what happens...... bet your moments of weakness will coincide with everytime sd or dh piss you off!
college related expensis
college related expensis only(with a good average), if she becomes disabled God forbid,medical..or age 30.
25 yrs old..is still to young.
I've seen kids(adults) at 25 get BIG inheritances,or savings accounts and blow 30 yrs of savings, relatives saved for them... in less then two years.
30..she gets small lump sum, and interest..quarterly..until age 35 then they get FULL amount which is available..IS what I would do...by age thirty most are settled...my opinion anyway!
I've never heard of
I've never heard of "upromise" before. Thank you! I am already looking up information for it!
You could purchase a 529 plan
You could purchase a 529 plan with you as trustee or whatever they term it. That way the money is purchased at today's tuition prices for tomorrow's tuition costs. In my state the money can be used for any of the state schools. If the student decides to go to private school or in another state, those funds are still there, probably worth less, but still a good chunk! You can also transfer the student's name to another child, if need be...God forbid something happens to the original child or said child decides not to go to college. Tuition is paid for my 2 oldest bio children...one will be going off to college this fall and the second child will be the following fall. Of course the oldest is going to a private school...go figure! I have already purchased a years tuition for the third child and he is in 7th grade. If your SD is only 5, you could really get a leg up on tuition costs if you start investing now in a 529 plan. Also, I believe if your name is on the plan and for some reason things turn out differently when she is 18 and ready for college, the money goes back to you or some other student that you designate.