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Saving For Your Keiki’s Future…It’s Never Too Early to Start!

ASB December 07, 2018 | 5 min read N/A

Saving for your Keiki

Saving for your keiki’s future is an important investment every parent/guardian should consider. A college degree can open many doors, giving your child a head start on their career and valuable connections in the real world.  With rising costs of college and the high cost of living in the Aloha State, planning for the future can be a nerve-wracking thought. If you’re wondering how you’ll be able to afford your child’s higher education, rest assured that you’re not alone. Read on to learn about how a specialized savings account and other college savings options can help you start saving for your child’s future.


The average cost of a college education in the United States has steadily increased in recent years. For the 2017/2018 school year, in-state tuition at a public university averaged $25,290 (College Data), and private universities averaging over $50,000 a year in tuition. This is a drastic increase from the year 2000, when the cost of public university tuition was less than half. By 2030, the average cost of a public university is expected to reach nearly $45,000 per year, according to US News and World Report. This significant increase in cost in a relatively short time means that saving for college in your children’s early years is more important than ever before.

Due to the high costs of college tuition, more and more Americans are racking up student debt. In fact, according to Student Loan Hero, the average amount of debt for the Class of 2017 graduates was $39,400. An estimated 44.2 million Americans currently have some amount of student loan debt. Borrowers aged 20 to 30 have an average monthly student loan payment of $351. In order to save for college and future inflation, it’s important to consider all of the savings options available to you for your child. Putting money away specifically for college can help lessen or eliminate the potential debt your child may face.


Deciding when to open a savings account for your child can be based on many factors. Generally, opening an account sooner rather than later will give you the opportunity to save more money over time. For example, opening a child savings account such as our Moneyhune Savings account while your child is still an infant or toddler allows you to deposit money into the account for almost a full 18 years before your child goes to college. Upon opening such an account, many parents/guardians regularly make annual deposits on special holidays, such as their child’s birthday and Christmas Day.

Do you have older children? If so, it’s not too late to open a Moneyhune Savings account for them. Opening an account when your child is in elementary school or junior high school still gives you a chance to save up while teaching your keiki how the savings account works.


There are many benefits of opening and maintaining a child savings account, at any age. Most child savings accounts require very small opening deposits and do not include a monthly service fee. These accounts also often earn interest with lower minimum balances than regular savings accounts. Some accounts even provide children of a certain age, usually around 12 or 13 years old, with their own ATM bank card to withdraw money from ATMs.

Perhaps the most important benefit of a child savings account is the opportunity to teach your children about financial responsibility. If you have young children, you can slowly introduce the concept of savings when they receive money for their birthdays or holidays. As your children get older, you can encourage them start to make money choices on their own. This might include letting them choose how much of their gift money they wish to deposit or allowing them to make a withdrawal for a big purchase, like a new video game or bike.


Generally, a child savings account is opened as a joint account with one or both parents or a guardian. This gives the parents/guardians custodial rights over funds in the account. Opening an account for your child is similar to opening a savings account for yourself. To open an account, you’ll need identification for yourself and the date of birth and Social Security number of your child.

When your child turns 18, they will take ownership of the account. Most children’s savings accounts automatically change into a regular savings account when they come of age. This then gives your child complete control over the account.


Another option for saving up for your child’s college education is a college savings program. There are many different options you can set up specifically for college savings. Working with a financial planner for education planning can help you navigate the various college savings options. For example, Section 529 College Savings Plans provide a great opportunity to save for education. With a 529 plan, you and your child can enjoy tax savings when they’re in college as qualified education expenses can be withdrawn income tax-free.

There’s no doubt that saving money for your children is a wise investment in their future. Whether your child is 8 or 18, consider the above tips to set them up for long-term success.