Amy & Aron's

1. UGMA Accounts: Saving and Investing for Your Child

Have you ever wanted to put money aside for your child but wished there were an account specifically designed for that purpose?

That's where a UGMA account can come in.

UGMA stands for Uniform Gifts to Minors Act. Basically, it allows a parent, grandparent, or another adult to put money or investments aside for a child.

Depending on the account, you can generally invest in things like stocks, bonds, mutual funds, and cash.

One thing I really like about the idea of a UGMA is that the money doesn't have to be used for just one specific thing, such as college. It can potentially be used for other expenses that benefit the child.

But there's something important parents need to understand: the money belongs to the child. The adult is simply managing it while the child is a minor. Eventually, control of the account transfers to the child according to the rules that apply in your state.

So before opening one, it's a good idea to understand exactly how your state's rules work.

Is a UGMA right for every family?

Not necessarily.

But if you're looking for a way to invest money for your child and want more flexibility than a college-only savings account provides, it's definitely something worth researching.

And honestly, it can also be a great opportunity to teach kids about saving and investing.

2. Term Life Insurance: Protecting the People You Love

Let's talk about something that isn't always fun to think about: What would happen to your family financially if you weren't here?

Nobody likes having that conversation, but it's an important one.

That's where term life insurance can help.

Term life insurance provides coverage for a specific amount of time, such as 10, 20, or 30 years. If the person who is insured passes away while the policy is active, the beneficiaries generally receive the death benefit.

For parents, this could help provide financial support for things like:

But how expensive is it?

This is one of the first questions most people ask.

The answer is: it depends.

Your age, health, tobacco use, coverage amount, and length of the policy can all affect what you pay.

For example, a healthy nonsmoker in their 30s may be able to get a $500,000, 20-year term policy for a relatively affordable monthly premium. But someone who is older or has certain health conditions could pay considerably more.

That's why getting several quotes can be helpful.

The important thing to remember is that life insurance isn't necessarily about getting rich.

It's about making sure the people you love aren't left struggling financially if something happens to you.

For families with children, that can be a pretty important part of the financial plan.

3. Custodial Roth IRA: Yes, Your Kid Can Start Saving for Retirement

Now here's one that many parents don't realize is even an option.

If your child has earned income, they may be able to have a custodial Roth IRA.

Yes, we're talking about retirement savings for a kid!

It might sound strange to tell a teenager who is working their first job that they should think about retirement. But starting early can have a huge advantage: time.

For 2026, the IRA contribution limit is $7,500, although a child's contribution generally can't be more than their eligible compensation for the year.

So, for example, if your teenager earns $3,000 from a legitimate job, they could potentially contribute up to $3,000 to an IRA.

The money doesn't necessarily have to come directly from their paycheck. A parent could give them the money to make the contribution, as long as the child has enough eligible earned income to support the contribution.

Why start so young?

Because compound growth can be pretty amazing.

Money invested when someone is 15, 16, or 18 has potentially decades to grow.

Even if your child isn't making much money right now, getting them into the habit of saving and investing early can teach them something that will stick with them for the rest of their lives.

And that's really the bigger lesson.

It's not just about the money.

It's about teaching your kids that their future self matters, too.

So Which One Should You Choose?

Here's the thing: these three options aren't really competing with each other.

They serve completely different purposes.

A UGMA account can help you invest money for your child's future.

Term life insurance can help protect your family financially if something happens to a parent or another income earner.

A custodial Roth IRA can help a working child start building retirement savings incredibly early.

The right choice depends on what you're trying to accomplish.

Maybe you want to start investing for your child's future.

Maybe you realize you need to protect your family with life insurance.

Or maybe your teenager has a job and you're thinking, "Why not help them get started with retirement savings now?"

There isn't one answer that works for every family.

Start Where You Are

I think one of the biggest mistakes we can make with money is believing we have to have everything figured out before we start.

You don't.

You can start small.

You can learn as you go.

And you can have conversations with your kids about money along the way.

Because financial planning isn't just about numbers in a bank account. It's about protecting your family, preparing for the future, and teaching your children how to make smart decisions with money.

And sometimes, the best financial gift we can give our kids isn't money at all.

It's the knowledge of what to do with it.

This post is for educational purposes only and isn't financial, tax, or insurance advice. Rules, eligibility, taxes, and insurance costs can vary, so consider talking with a qualified professional about your family's situation.