#53: 529 vs UGMA vs UTMA: How First-Gen Families Can Invest for Kids Without Sacrificing Their Own Security
Sign-up for Roth IRA Office Hours
Book a 1:1 Coaching Discovery Call
In this episode of Wealth Para Todos, host Rita-Soledad Fernandez Paulino, a queer Mexican-American money and self-care coach, addresses a listener's question about the best investment accounts for children, including 529 plans, UGMA, and UTMA accounts.
They emphasize the importance of first ensuring personal financial stability before investing for children, highlighting the emotional, cultural, and ancestral factors that influence these financial decisions in first-gen and second-gen families. Soledad provides detailed explanations of the different types of accounts and steps to open and manage them. They also underscore the significance of financial education, advocating for teaching children money management skills rather than just passing down wealth.
The episode concludes with reminders and encouragement for parents to invest from a place of abundance, not self-sacrifice, while taking care of their own wellness.
00:00 Introduction to Wealth Para Todos
00:23 Understanding the Emotional Weight of Investing for Children
02:07 Prioritizing Your Financial Security
05:22 Exploring 529 Plans
06:29 UGMA and UTMA Accounts Explained
08:47 Steps to Start Investing for Your Child
09:18 Teaching Financial Literacy to Your Children
10:38 Personal Insights and Future Goals
12:51 Final Thoughts and Encouragement
13:39 Podcast Wrap-Up and Call to Action