Saturday Jun 07, 2025

Kids and Capital: Navigating UTMAs, 529s, and Raising Financially Savvy Investors

The average child spends about eight hours a day in front of a video screen. We’ve now seen a generation of children raised on a digital cocktail of social media, video games, and streaming services. A panoramic window into the world, algorithmically tuned for your child’s wants and subconscious desires.

Ferraris turn more heads than Hondas, a human preference so intrinsic that it shows up in children. And wealth is more attractive than knowledge. Countless hours of affluence are processed by brains that can’t even comprehend a simple cash flow statement.

We’ve all encountered the proverbial trust fund baby with more money than sense and think, ‘what went wrong’? The grunge of teen spirit cannot be washed away with money. It must be bathed in lessons hard learned under watchful guidance.

Even then, the stink of poor choices persists as potent reminders that the stakes are real. Guidance is the key. What form this guidance takes is debatable and can vary depending on the child or situation.

Ben and Brent argue their approaches to how we should introduce our children to wealth. Their approaches vary, demonstrating that there is no one ‘correct’ path, but branching paths. The objective should be to move on those paths that chart in the generally correct direction.

Ben prefers the use of UTMA (Uniform Transfers to Minors Act) account as a training ground with a liberal degree child responsibility while Brent favors a more conservative tact with tighter controls.

It’s a lively discussion, and we are curious to find out where you stand on the subject. What age do you think your kids would be ready to handle a meaningful sum of capital?

Send comments, questions, and requests for show contents to ben@nwmgadvisors.com or brent@infinitwealthplanning.com!

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Sources:

Cost of College over Time: https://nces.ed.gov/programs/digest/d21/tables/dt21_330.10.asp

‘Trump’ Accounts: https://www.cnbc.com/2025/05/22/tax-bill-maga-baby-bonus-now-called-trump-accounts-who-is-eligible.html

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About your Hosts

Ben Jones, CFP®

Managing Director, National Wealth Management Group

www.nwmgadvisors.com 

Follow him on X @thekaratstick

https://www.linkedin.com/in/ben-nwmg/