Its a Toy- It's fun for....17 days

With Christmas right around the corner...literally hours away...it has got me thinking about all of the "things" that Gage is about to get- things that will be put into his (thankfully) large toy room.

I am 100% guilty- just as 100% of each of my readers are- of getting kids toys. Toys are what they want right? Yea- that's right...for all of 17 days! After that, well- they start to collect dust. But, it's the 17 days that count!

The week after Gage was born, we went directly to our bank (State Employees Credit Union) and opened an account for him called a "Fat Cat"- it is a high-interest savings account for kids under 12. While your bank may not have a specific account for kids, it is optimal to look for any type of savings that has an interest of at least 0.75%- Gage's is a 1.0%...meaning he earns 1% of his money in interest monthly.

For each celebratory occasion, I have asked immediate family member (or those that would not be offended) to put money into his account. Anyone can deposit money, but only I can access it- which is nice! So, my grandparents can drive to the credit union, give them Gage's name and boom- they can deposit without any additional information.

It is really unbelievable how excited our family is to have this option. Of course, Gage still gets toys- just not the entire budgeted amount is spent on toys. Usually 50% enters his savings and the other 50% is spent on the 17 day loved toys!

Now, why did I choose the savings account instead of a CD or bonds? Fluidity. If I want to move his money to another higher interest account or if he gets older and wants to use it as he wishes, it's there for the taking. With CD's and bonds, you don't have that fluidity. Of course, you lose a bit of interest, but it's worth the loss in my opinion. I don't like sticking money anywhere that is not accessible. And, as for the stock market- until this economy turns around, NO WAY! 

Instead of 100% toys- try to do a percentage into a savings account. They won't miss the toys and they'll appreciate the money when its time to buy a car!

Telling Santa all of the toys that he wants...

Here's to Santa visiting your home- and 17 day toys!

Erica