024 | How to Use 4 Types of Accounts to Invest for Your Child’s Future (HYSA, 529 Plan, UGMA / UTMA, and Custodial Roth IRA)

Compound interest, which has been dubbed the 8th wonder of the world by Albert Einstein, needs time to grow its magical gains. Which group of people likely has the most time in the world to benefit from the effects of compound interest? Children, of course! Once you start becoming financially literate, you may likely start thinking about the kiddos in your life, whether they be your own children, nieces or nephews, or even grandchildren, and think, “If only they could start investing for their futures at such a young age! They would be set for life!” Well, here’s some exciting news: both you and they could potentially start saving and investing for their futures! 

In this episode, the follow 4 accounts are reviewed to save and invest for your child: HYSA (high yield savings account), 529 plan, UGMA / UTMA, and custodial Roth IRA. 

As a current or future PA, you are likely a pretty giving and selfless person, so you are probably very excited to start investing in the future if your children. However, it is very important first put on your own oxygen mask, meaning, ensure that you are first set up to reach financial independence in the future prior to helping out your kiddos. 

If your child(ren) get one or even all 4 of these accounts set up to save and invest, then think of how much their wealth may build with time due to compound interest! 

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