I opened an interest bearing savings account for my granddaughter when she turned two years old, to teach her about money and the value of saving even small amounts. Ever since then she has been collecting pennies, nickles and dimes that she finds, as well as small amounts of change and money she is given. She also, actually I do for her at her request, sells her larger toys as she outgrows them, kitchen, sand box, trikes, wagon, swing set, etc. She spends about 10%, pays her tithing with 10% and puts the rest in savings. She is involved in the whole process, even rolling the coins. She is now 7 1/2 years old and has almost $800.00 in savings. Her name is on the account, though she can't as yet withdraw money from the account. It is name only in this state until a certain age. When she gets old enough, it will be her account to do with as she pleases but she will be encouraged to continue adding to her savings and keep it for either college or retirement. At least something special like a home.
PS. My granddaughter's account is not just fed money. The money she has in savings is money she has put in there, no body else. How can she learn about money and to appreciate it, if the money in her account just appears there with no effort on her part? Even the money to open the account in the first place, was $30.00 dollars in mostly pennies she had found and put into her piggy bank.