Money Honey
One thing parenthood teaches you quickly is this: we don’t actually know who our children will grow up to be.
College? Trade school? Entrepreneurship? A creative path that doesn’t even exist yet?
The truth is—we don’t know. But what we can do is give them options. And one of the biggest gifts we can offer our children is financial preparation, even in small, imperfect ways.
When my daughter was born, I didn’t have a crystal-clear plan for her future. What I did have was the desire to set something aside—something that could grow with her, no matter which direction life takes her.
Here are a few realistic, flexible ways to help grow your toddler’s savings without pressure, guilt, or needing a huge income.
1. High-Yield Savings Accounts (HYSA): Simple & Flexible
If you’re like me and want something straightforward, a high-yield savings account (HYSA) can be a great place to start.
Unlike traditional savings accounts, HYSAs offer higher interest rates, meaning your child’s money works a little harder just by sitting there. There are no assumptions about college, careers, or timelines—just growth.
This option is especially great if:
- You want liquidity (access when needed)
- You’re unsure what your child will need the money for later
- You want low risk and simplicity
2. Gift Contributions Instead of More Toys 🎁
One thing that has helped me tremendously is rethinking how we handle birthdays and holidays.
Instead of more toys (that often get outgrown quickly), I’ve started giving family and friends the option to contribute to my daughter’s UNest account for Christmas and birthdays.
Not everyone will participate—and that’s okay. Even small contributions add up over time. It also gives loved ones a meaningful way to invest in her future rather than just adding clutter to the house.
You can phrase it gently, like:
“If you’re interested, we’re also saving for her future and welcome contributions—but no pressure at all.”
3. Turn Outgrown Items into Savings 💸
Kids grow fast. Like… blink and it doesn’t fit anymore fast.
One way I’ve found to quietly build savings is by selling gently used items at children’s resale shops or online marketplaces. Many stores buy:
- Clothing
- Shoes
- Toys
- Baby gear
Instead of that money disappearing into everyday expenses, I set it aside directly into her savings. It’s money that already existed in our household—it just needed a new purpose.
4. Life Insurance Policies That Build Cash Value
This is an option many parents don’t realize exists.
Certain whole life or universal life insurance policies allow you to build cash value over time. When your child reaches adulthood, the policy can potentially:
- Be cashed out
- Used for education, business startup costs, or emergencies
- Continue as a life insurance policy they already own
Some parents choose this route because it combines protection and long-term savings. If this is something you’re interested in, it’s worth speaking with a licensed financial professional to explore options and make sure it aligns with your goals.
5. Custodial Accounts or Investment Accounts
For parents comfortable with investing, custodial brokerage accounts can allow you to invest on your child’s behalf. These accounts can grow significantly over time but do come with market risk.
This option works well if:
- You’re thinking long-term
- You want the potential for higher growth
- You’re okay riding out market ups and downs
6. The Most Important Part: Consistency Over Perfection
Here’s the truth that took pressure off me:
It’s not about doing everything. It’s about doing something consistently.
$10 here. $25 there. Birthday money. Resale cash. A holiday contribution. Over time, these small actions build a foundation that gives your child choices—choices you didn’t have to have all figured out on day one.
Final Thought
We may not know what our children will become, but we can help ensure that when the time comes, they’re not starting from zero.
Savings isn’t about predicting their future—it’s about preparing them for possibility.
And that, in itself, is an act of love.
Notes By Kae 