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A12 BUSINESS
Thursday 15 sepTember 2022

Millennial Money: Get kids set to invest

with these accounts

By ELIZABETH AYOOLA of
NerdWallet
During my late teens, my
mom handed me two
worn, blue passport-size
books with details of my
custodial investment ac-
counts. I had no clue what
to do with them, but it
didn’t matter, because the
accounts were empty any-
way. Perhaps for the best,
because I’m almost certain
my assets wouldn’t have
stood a chance. In this Dec. 26, 2020 file photo, children are silhouetted against
a pond as they look at Christmas lights at a park in Lenexa, Kan.
I am now a mother, have Associated Press
opened a custodial ac-
count for my 4-year-old If your child has a job with LAYED GRATIFICATION
son, and often think about taxable income, you could Delayed gratification is an
how I can prepare him to also help them open a cus- important adaptive skill
take control of his invest- todial IRA or Roth IRA. parents can teach kids for
ments in the future. If you’re A good thing about cus- them to manage custodial
looking for ways to prep todial accounts is that al- accounts, says Anna N’Jie-
your child for investing, an though kids don’t control Konte, a CFP and founder
experienced parent and fi- the accounts until they of Dare to Dream Planning
nancial experts have some reach the age of majority, in New York City.
ideas. you can show them what’s Since custodial accounts
SHARE MONEY VALUES EAR- happening. are brokerage accounts
LY Michael Costello , a retired that can be tapped into at
Preparation begins as early consumer products execu- any time, it’s important kids
as possible when it comes tive based in Miami, and view their investments as
to teaching your kids a parent of three, says he long-term money that can
about money, says Cristina prepared his now-grown buy them flexibility and op-
Livadary, a certified finan- kids to manage their cus- tions in the future, she says.
cial planner and co-found- todial accounts by teach- This could help them refrain
er of Mana Financial Life ing them about budgeting from spending it now.
Design in Marina Del Rey, and saving early. He also “I think one of the super-
California. No matter your let them view their invest- powers of people that are
child’s age, you can start ment accounts and watch really financially successful
by talking openly about fi- them grow, and he facili- and just successful period,
nances and sharing your tated investing discussions is when they have the abil-
values around money. with them. ity to say, ‘I recognize that I
Something I’ve started do- “We ended up having a want this right now, but it’s
ing with my son is teaching lot of conversations about going to be so much better
him the value of giving, by why do you do long-term if I wait and if I keep at it,’”
encouraging him to give holding? What should you she says. But for delayed
toys away before buying look at? What are ETFs ver- gratification to work, it’s im-
new ones. An approach sus regular stocks? What do portant to have financial
Livadary recommends to bonds do?” he says. goals and a plan, which I
teach money values is as- Teaching his kids about didn’t have as a teenager,
signing what she refers to exchange-traded funds and why I think investments
as a “job description” to and other assets made in my custodial account
each dollar you give your him confident about them wouldn’t have lasted long.
kids. having access to the cus- For the record, my financial
“One of my favorite things is todial accounts when they plan was to become a rich
taking the dollars and real- turned 18. actress and fund all of my
ly splitting them up in ways There are many ways to lifetime expenses that way.
that are really aligned to teach your kids about the When setting financial
values,” says Livadary. “So, power of investing. Help- goals with your kids, it’s fine

let’s say you get $3 a week ing them understand what to set both long- and short-
$1 for giving, another dollar compound interest can do term ones.
is for saving, and the other for every dollar they invest Why? Some people just
dollar you get to spend.” could motivate them to aren’t inspired by financial
TEACH INVESTING BASICS invest for the long term. If goals that are too far into
A custodial brokerage ac- you think they’re ready to the future, says Livadary.
count is an investing ac- start trading, some brokers “Sometimes it’s buying a
count opened by a parent offer youth accounts that house in the next three
or guardian for a minor until let teens start investing with years, but sometimes it’s
they reach the age of ma- parental oversight. taking a vacation … and
jority. SET GOALS AND TEACH DE- that’s OK. q