How to plan for your child’s future: Without just putting money in a savings account

Many parents open a savings account when their child is born. They start setting aside $50–$100 a month, hoping that by the time their child turns 18, there will be enough for college, a car, or a down payment on a first home. It feels responsible, simple, and safe.

But in reality, after 10 or 15 years, that savings account often hasn’t grown much — at least not in real terms. The money might still be there, but what it can actually buy has declined. And it’s no longer enough for the goals parents set out to achieve. Invest in your future with PredictStock.

Why saving alone isn’t enough anymore

Most traditional savings accounts in the U.S. offer annual interest rates of just 0.01% to 0.1%. High-yield online accounts offer more — in the range of 4.0% to 5.0% during favorable periods — but even those returns barely keep up with inflation.

In recent years, inflation in the U.S. has hovered around 3–5% annually. That means even if your money is growing, it’s just treading water — gaining value on paper, but not in real purchasing power.

Now consider the math. If you set aside $100 per month in a traditional savings account with a 0.1% interest rate, after 18 years you’ll have around $21,700. Even with a 4.5% yield, that would grow to just about $29,300.

Meanwhile, the cost of education continues to rise. According to the College Board, average college tuition increases at roughly 4–5% per year. Something that costs $20,000 today could easily cost $40,000–45,000 per year by the time your child is ready.

In other words, your savings might not even cover a single year of college — let alone a full degree.

What investing can offer instead

Now imagine investing the same $100 a month in the stock market, aiming for a 7% annual return — roughly the long-term average of the S&P 500. After 18 years, you’d have around $44,000. At 8%, that grows to nearly $50,000.

That’s a difference of over $20,000 — without changing your monthly contribution. The only difference is that your money is working for you, instead of sitting still.

But what if you’re not an investor?

Most parents aren’t financial analysts. They don’t have time to track the market, study earnings reports, or build diversified portfolios from scratch. That’s completely understandable. Today, there are platforms that take care of the research and help you invest strategically — even if you’re just getting started.

PredictStock is one such platform. It analyzes over 8,000 U.S. stocks daily and delivers clear, data-backed recommendations: which stocks to buy, hold, or sell. It provides rankings by sector, Factor Scores (Value, Growth, Momentum), and a curated list of the day’s top picks in a section called Today’s TOP.

This isn’t hype or day trading advice — it’s a practical, consistent way to invest without needing to become an expert. You stay in control, but the heavy lifting is done for you.

Financial care means more than good intentions — it means strategy

Saving regularly is a good habit. But in an economy where the value of money erodes over time, habit alone isn’t enough. Investing is no longer an optional skill — it’s an essential tool for parents who want to give their children a strong financial foundation.

You don’t need to start big. What matters is consistency — and using the right tools to help you grow. PredictStock makes it easier to invest with clarity, not guesswork — and helps you make smart decisions, even with limited time.

Caring for your child’s future means thinking long-term. And few things are more long-term than helping your money grow — quietly, steadily, and with purpose.