An approach Livadary recommends to teach money values is assigning what she refers to as a "job description" to each dollar you give your kids. A good thing about custodial accounts is that although kids don't control the accounts until they reach the age of majority, you can show them what's happening. Teaching his kids about exchange-traded funds and other assets made him confident about them having access to the custodial accounts when they turned 18. SET GOALS AND TEACH DELAYED GRATIFICATIONDelayed gratification is an important adaptive skill parents can teach kids for them to manage custodial accounts, says Anna N'Jie-Konte, a CFP and founder of Dare to Dream Planning in New York City. Since custodial accounts are brokerage accounts that can be tapped into at any time, it's important kids view their investments as long-term money that can buy them flexibility and options in the future, she says.

Source: Forbes September 23, 2022 15:40 UTC