Posted on by Jason

Teaching Our Teens About FI and Money (Parts 1 and 2)

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Having children comes along with many necessary expenses, but also provides a key opportunity to provide them with a solid financial education. In part one of a two part series, we tackle a topic that’s been requested many times by viewers: all things relating to kids. Topics discussed in this episode include our own financial upbringing, early attempts to teach our kids about saving + investing, the value of teens having jobs, and talking with them about FIRE. Join us for the first episode of this two-part series.

Note: This content does not constitute investment advice and is being presented for informational and educational purposes only.

Part 1

Part 2

Show Notes

Essential Background: If you haven’t watched our very first episode of Two Sides of FI which contains much of our own financial backstory, this is definitely material relevant to our discussion here.

UTMA custodial accounts may be useful investment vehicles for you to consider for your children, particularly when they don’t yet have earned income and are not eligible for a Roth IRA. These accounts are very flexible by design, and unlike with a 529 plan, the funds in a custodial account do not have to be used solely for higher-education expenses. 

529 Plans are tax-advantaged savings plans designed to encourage saving for future education costs. There are many different places that can host these accounts including but not limited to the same brokerages you may use for your own investments. Be sure to look into whether there are (tax or other) advantages in your state of residence before deciding where to invest.

Roth IRAs are well known by most viewers of our channel, but did you know there are compelling reasons to consider them for your kids? For minors, these will need to be custodial accounts just like a UTMA and most brokerages offer them.

You can find information on the tools we mention in each episode along with additional information in the Resources section of this site.