As part of teaching your child about financial literacy you will want to include learning about investing, UGMA accounts and other financial investing options. So how do you do that?
Investing can be confusing. Let me direct you to a few resources that might help.
Disclosure: This post is in partnership between Responsival and this blog. This is not financial advice.
UGMA Account vs Custodial Roth IRA
An important thing to know is that there are different types of investment accounts that are relevant to children. When deciding if you want an UGMA account or Custodial Roth IRA you will want to figure out one important question.
Does your child have their own income? This can be regular or part time income but can’t be like birthday gifts or allowance. If they have their own income you will want to look at the Custodial Roth IRA. If not, look into UGMA accounts.
Investing… huh?
What if you don’t understand what you’re reading? If the problem is terms you don’t understand, you can check the Investing Glossary. Not sure where to look? In general use trusted resources such as .gov or .edu websites. Learning resources from investing companies are pretty good too. The kidvestors website has lots of free resources about investing with kids.
Be wary of advice from any old Blogger, YouTuber or TikToker. That’s why I’m just directing you where to look. Not everyone has your back and knows what’s best for you and your family.
My Kids are Older
If you have teens they are old enough to learn about this themselves. I suggest directing them to a course on Personal Finance from KhanAcademy. They don’t have to be homeschoolers to use it. It’s education for ANYONE. Teen and adults alike might want to check out the Money With Katie podcast too.
Hope you are able to find what you need to get investing!
