Good Financial Reads: Financial Planning Advice for Parents

I grew up in a family of first generation immigrants. My dad was a brilliant academic who came to the U.S. on a scholarship to Harvard and who believed education could solve everything. My mom, who supported both of them in those early years, is the more pragmatic one in the family, who believes in the power of working hard and living frugally. In our family, money talk was always framed in the context of security and responsibility rather than indulgence.

Parenting is one of the most fulfilling and challenging human experiences. Life can feel overwhelming at times, but planning for your current and future financial life is important. If you have kids, or are thinking about becoming parents, then you have likely started to think about how you can prepare financially for the future. Some of the main areas of focus for parents typically include: budgeting, estate planning, life insurance, health insurance, childcare, college education, teaching your children the value of saving money, having an emergency fund, and saving for your retirement. 

Have you thought about opening a Roth IRA for your kid to give them a headstart on saving for retirement? Opening a Roth IRA account for your kid can mean that they will benefit from decades of compound interest. It can be a great way to introduce the concept of saving and investing to your child. However, there are a few things you need to think about before you open a kids Roth IRA.