If you or someone you know is expecting, you may start to wonder about the child's financial future, especially during the current economic climate.

In order to help a child get off to a good start, you can open a savings account for an unborn baby. However, since most banks require a social security number to open a bank account, this can prove tricky.

Decide on the type of account that you want to open. You can choose an educational savings plan or a traditional savings account to start collecting interest on the money that you put away. Options include IRAs, 529 plans or state prepaid tuition saving programs. To open a specific savings account, go to your bank or financial institution to go over options.

Give the bank your financial details first. Then provide them with your child's date of birth and social security number after the birth.

Complete the steps to open a 529 savings account for your unborn child. Although a 529 savings account is not intended for an unborn child, parents can still start this account prior to the baby's birth. To do this, one of the expected parents is named as the account beneficiary. Once the child is born, the parents can transfer the benefits into the child's name. A 529 plan is intended to be used exclusively for educational purposes, but the savings money can be used for other pursuits. However, beneficiaries would then be subject to taxes and a 10 per cent penalty.

Check out investment rates often in order to determine the best savings account to open for your unborn child. The benefits of a savings account for an unborn child are fairly obvious. You can start saving for your child's future and give them the chance to have financial independence when they reach adulthood.


You may want to wait until the child is born in order to open a savings account. Many accounts, like an education savings account (ESA), will not permit an account to be opened for an unborn child. Once the child is born and issued a social security number, you can proceed to start a new account. If you try to open a savings account in the child's name before their birth, the bank official will likely tell you to return after their birth. Never provide false information, like a fake social security number as a way to open a savings account early.