Something Special for Baby?

I wanted to share an idea that my sister and her husband came up with since they became grandparents a year ago. I thought it was such a great idea, I thought I'd pass it along.

Their idea is to open a savings account for their grandson and put money into it each month. Not much. Just a little each month. They figure once it's time for him to graduate, they will have a nice sum to either give to him or be able to buy him something special. They are planning to keep it a secret so it will be a surprise when the time comes.

I wish I had thought about doing something like that when I became a grandma. We already have 6 grandkids and the oldest is almost 16. So, there's not time to accumulate much before he graduates. But I have thought that maybe we should set up some kind of grandkid account for the future.

I did the math. If we put in just $10 per month, after 18 years, there will be $2160. Of course if we put it somewhere that earns interest, it could be even more. That could be used for all kinds of different things.

Isn't that a great idea? I love it! And imagine if you started even before you had grandkids, how much more you could have available to spoil those grandbabies when they do come!