Why You Should Open a Savings Account for Baby Photo: Thinkstock / The Bump
Have you started a savings account for your baby yet? A new study suggests that if you do, he’s more likely to go to college -- six times more likely, to be exact. The study, conducted by the Center for Social Development, followed 3,563 kids who ranged in age from 0 to 12 years, and then followed up with the ones who’d finished high school 5 to 10 years later. Researchers even factored in family income and how much money was in the kid’s savings account, and found that those variables didn’t matter. What really increased the child’s likelihood of going to college was that the savings account was in his name. In the report, the researchers theorize it’s the belief that they may have the means to pay for college later on that keeps kids with savings accounts motivated. Luckily, if you’re pregnant or have a baby at home, you still have plenty of time to open an account!
How do you invest in your baby’s future?
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