Updated: Apr 6
Imagine your child, tween, or teen having a strong financial future because of the choices you made on their behalf today? Did you know that you can start investing for your child today using what you have? You don't have to have thousands to start. You can start with $5, $25, $100, $1000... whatever amount you choose!
Are you confused on what accounts to open or how to begin investing for your child or teen? Take a look at some of the options below
529s - Tax advantaged college savings plans that allow you to contribute money towards your child's educational expenses (tuition, room, & board) which can be used at traditional institutions, trade schools, and some secondary education schools. You might be thinking, what happens if my child doesn't go to college or a trade school? The good news is that you remain the owner on the account and can transfer funds to another beneficiary (family member) if your child ends up no longer needing the funds.
UGMA/UTMA - UGMA and UTMA are custodial brokerage accounts that have fewer tax advantages than a 529 and you are in control of the account until your child reaches the age of majority (18 or 21 depending on your state). Once your child reaches the age of majority, they can spend the funds however they please!
Custodial Roth IRA - Give your child a head start and help them begin putting money aside for their retirement by opening a custodial Roth Individual Retirement Account. However, your child must have verifiable earned income. You can open an account on behalf of your child at most major brokerages and retirement companies. We shared more about this here.
Let's give our children the future that they deserve! Teach your children and teens how to invest by enrolling them in KidVestors.