Building Wealth for Kids: Accounts Every Parent Should Know

Welcome back to the Dollar Wise Podcast. In this episode, Andrew Barnhardt and Brett Herron explore various strategies for saving for children’s futures — whether it's for education, retirement, or general financial support. They break down the pros and cons of different account types, including 529 plans, custodial Roth IRAs, UTMAs/UGMAs, and saving in a parent’s name. Listeners will gain a clear understanding of how to align financial tools with their goals and ensure they’re setting up the next generation for success — without putting their own financial health at risk.

Tune into this episode to also learn:

● The tax benefits and flexibility of 529 college savings plans.

● How custodial Roth IRAs can jumpstart retirement savings for teens with earned income.

● Why UTMAs and UGMAs offer flexibility — but come with tax and control trade-offs.

● When it may be better to save in your own name instead of your child’s.

What we discussed

● [00:00:00] Introduction

● [00:00:31] Why saving for kids must come after securing your own financial foundation.

● [00:02:35] Pros, cons, and new rules around 529 college savings plans.

● [00:06:55] How custodial Roth IRAs work — and why earned income is required.

● [00:11:04] The flexibility and limitations of UTMAs/UGMAs for broader financial goals.

● [00:14:59] Saving in your own name: flexibility, control, and important tax considerations.

● [00:20:07] Why segmenting investment “sleeves” can help avoid misusing funds.

● [00:22:07] A quick mention of upcoming TRUMP accounts and what to expect.

3 Things To Remember

1. Saving for your children is important, but make sure your own financial house is in order first.
2. Each account — 529, custodial Roth, UTMA/UGMA, or personal savings — has unique pros and cons.
3. Teaching your child about money can be just as valuable as saving money for them.

Useful Links

Connect with Andrew Barnhardt: [e-mail] | LinkedIn

Connect with Brett Herron: [e-mail] | LinkedIn

Like what you’ve heard…

1. Learn more about HFM HERE
2. Schedule time to speak with us HERE

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

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