1. Disadvantages of saving money in children’s names
1. Inconvenient withdrawals Deposits prepared for children are usually time deposits. If parents need to withdraw money in advance due to emergencies, banks generally need to go to a bank branch with their ID card. Many children do not have ID cards, so leaving early will be very troublesome. In addition, some banks have special regulations for the withdrawal of deposits by minors. For example, children's accounts need to be consistent with their parents' accounts. Generally speaking, it is somewhat inconvenient to withdraw money from a deposit in a child's name.
2. Ownership dispute On the surface, the deposits in the child’s name belong to the child’s property. However, when couples divorce or parents pass away, disputes over the ownership of savings often arise. Take the death of a parent, for example. The ownership of a deposit certificate deposited by parents in the name of their children should be consistent with the name of the depositor on the deposit certificate, that is, the owner is the child, and the parents' behavior is a gift. But in fact, most parents do not hand over the deposit certificate and password to their children, so there is also a dispute that the gift contract is invalid. In the absence of a parent's will, the deposit needs to go through normal inheritance procedures, that is, other immediate family members also have the right to inherit. Of course, the final judgment still needs to be determined by the court based on the actual situation, but using the child's name to save money will increase the probability of ownership disputes.
2. Benefits of saving money in children’s names
1. Provide protection for children’s life and education. Children cannot live independently before they are minors and have no source of experience. In the event of an accident, such as divorce or death, the savings given to the child can protect the child's life and education to a certain extent.
2. Cultivate children’s financial abilities. Saving money in your children’s names is also more ritualistic for children and helps them gain access to wealth-related knowledge earlier.