Kids Money & Investing
Focused on building money for kids through saving, investing, and age-appropriate financial guidance.
Recent Kids Money & Investing Articles
What Is A Custodial Roth IRA?
- Custodial Roth IRA
Understanding Custodial Roth IRAs A Custodial Roth IRA is not just any retirement account. It’s designed specifically for minors (those under...
White House Approves $7.7 Billion in Student Debt Cancellation for 160,500 Borrowers
Frequently Asked Questions
When should I start teaching my kids about money?
Kids can learn basic money concepts as early as preschool. Lessons should grow with age, starting with saving and spending, then investing and accounts.
How do I teach kids the difference between saving and investing?
Saving is for short-term needs and safety, while investing is for long-term growth using assets like stocks and index funds.
What investment accounts can kids have?
Kids can use custodial accounts like UTMA/UGMA, 529 plans, and in some cases a Custodial Roth IRA if they have earned income.
What is the best investment account for a child?
The best account depends on your goal. 529 plans are designed for college savings, UTMA/UGMA accounts work well for long-term investing and flexibility, and a Custodial Roth IRA can be powerful if the child has earned income.
What should kids invest in?
Most kids start with diversified investments like index funds or ETFs rather than picking individual stocks.
What happens to a child’s account when they turn 18 or 21?
Custodial accounts legally transfer to the child at adulthood, giving them full control over the money and investments.
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Kids Money & Investing Key Terms
The key terms you need to understand kids money, management, and investing
529 Plan
A tax-advantaged account for education where investments and withdrawals grow tax-free when used for qualified school expenses.
Custodial Roth IRA
A Roth IRA for kids with earned income, allowing tax-free growth for long-term investing.
UTMA/UGMA
Custodial investment accounts that function like a brokerage account for a child, transferring full control at adulthood.
Coverdell ESA
An education investment account with tax-free growth and tax-free withdrawals for qualified K–12 and college expenses.
All Kids Money Categories
What Is A Custodial Roth IRA?
White House Approves $7.7 Billion in Student Debt Cancellation for 160,500 Borrowers