I'm a single mom and my income is modest.  I have three savings accounts set up;  one for each of my boys.  I have a direct deposit into the accounts on every payroll.  I don't miss the money cuz i never see it and it has added up quickly. 

We have savings accounts for our children, but the interest is low. Eventually we'd like to move their savings to a mutual fund that will collect more interest yet still not be risky. If you do this, keep a close eye on it b/c even the safer funds lose $. In my case as a child, my parents invested in a fund that I saw double in about 3 yrs. However, after some time, it gradually started decreasing, so I pulled the $ out. It's best if you can hold out and keep the $ in for the long term, but use your judgement. You don't want to get penalized either.