[what]

> We've had multiple people try to convince us to set up bank accounts for our kids, so that they could accumulate interest over 18 years.

I don’t really see the problem here? Why wouldn’t you want to set up financial accounts for your children and invest in them?

[HWR_14]

Those accounts should be in something that pays more interest because you give up the liquidity. You pay (in reduced interest rates) for the ability to withdraw at any time. You can instead be completely risk free and make more money* by promising not to need it for another 10, 14 or 18 years.

* However many of those methods involve locking in the interest rate, so you might miss out if banks start paying 10% like they did decades ago.

[j3th9n]

Leaving money in the bank is not investing. Also, compare interest rate with inflation, you’re probably throwing away money every year. Meanwhile, your bank is actually investing your money and beating inflation. They pay you the interest and keep the rest.