DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing Setting up Kids for Success
Dec 23, 2024
The hosts kick off with humorous stories about a chilly office mishap, setting a light-hearted tone. They delve into essential financial strategies for the new year and emphasize audience engagement. The discussion then shifts to smart investment strategies for children's future needs, highlighting fund allocation tips. They explore equitable financial planning among siblings, stressing the importance of compound interest. Finally, they compare custodial accounts and brokerage accounts, advocating for financial literacy as a crucial gift for kids.
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Saving for Children's Future
- Consider overall financial goals and children's ages when saving for their future.
- Calculate individual amounts based on time value of money to ensure equitable distribution upon reaching a target age.
Time Value of Money
- Use time value of money calculations to determine investment amounts for each child.
- This compensates for the time difference in investment growth based on their age.
Account Types for Kids
- Consider custodial accounts or individual accounts for saving, considering maturity levels.
- Be mindful of tax implications and control over funds when deciding account types.