Kids Savings Accounts: Good for kids or good for the bank?
Saving or Spending? First we should differentiate between kids accounts for spending, and kids accounts for saving; as they both have very different outcomes. Kids Savings Account for spending are essentially adult products tweaked for low value child usage. They are a very cumbersome way to manage a child's pocket money, and have very little educational purpose. These days there are a range of speciality products for children that take advantage of the transition to the cashless society, which allow parent to control the spending of their children through a managed debit card. People think so called high interest savings accounts for kids are good vehicles for long term savings, because they come from big banks that appear to be trustworthy. But according to Warren Buffett, “Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value....