I just had my first baby (!!), and in addition to keeping another human alive, it turns out I also need to consider her financial future.
I have to figure out what to do with that $40 her great-aunt gifted her and how (if ever) I'm going to help pay for college someday.
For starters, she says new parents should open an account for short-term, child-related expenses.
But, you'll also need to think about long-term costs (e.g., COLLEGE 😬).
There are a few ways to put aside money for your kid's education — most notably, the 529.
If a 529 seems too restrictive, Patel recommends checking out a custodial account or a Roth IRA.
A college fund is great, but you should only start one if you're in a good place financially.
If you're ready to set up a long-term, kid-focused savings account or college fund, ask yourself these questions.
When your kid gets a little older, be transparent about the cost of college and how much you can afford to help them.
This conversation should build on a series of money-focused conversations you have with your kid.
Once your child is old enough, help them set up a bank account.
If people gift your kid money when they're still little, put it aside so they can put it in their first savings account — or put it in an investment account so they can learn how investing works.
Disclaimer: this content is for informational purposes only and should not be considered specific investment, tax or legal advice for your situation.