Should You Open A Custodial Account For Your Kid?
- By
Julia Austin
Source: Steven Puetzer / Getty
They won’t accidentally spend it
Many parents don’t opt for a custodial account because they give their children a monthly allowance, and they encourage their children to save that money. Here’s the thing: your child’s allowance will not earn interest, and she may blow it on movies and meals. If you worry that creating a custodial account doesn’t offer that hands-on education about money management that an allowance does, you can still sit down and talk to your kids about spending habits.
Comment Disclaimer: Comments that contain profane or derogatory language, video links or exceed 200 words will require approval by a moderator before appearing in the comment section. XOXO-MN
