Category Archives: Grandchildren

Allowances for Children

Age 5 is a common age when parents start thinking about issuing an allowance to children.   The goal with an allowance is to teach children about personal finance and delayed gratification.  Children who practice delayed gratification tend to be more successful in life.  Thankfully, this is a skill that can be acquired with practice. You may choose to tie the allowance to chores, or not.  There are two schools of thought on the topic, which you can read about here.  Personally, IRead More

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Personal Finance For Children

When it is relevant for a client, PWR financial plans include a section on personal finance for children.  We compile information from a few sources including Money as You Grow. Here are some age appropriate activities I started doing with my 3 1/2 year old. 1)  Identify what costs money versus what is free.  For example, we pay money when we go to the local pool.  We don’t pay money when we go to the library, park or the beach.  Those are free activities. 2)  Explain thatRead More

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When grandparents want to help pay for a grandchild’s education, they can choose a method that is just as beneficial to them as it is to their grandchild. With smart planning, grandparents can save taxes using a tax-preferred vehicle like a 529 plan. If they choose a 529 plan, it is important to understand the implications of having grandparents as owners instead of the child’s parents. Tax-deferred 529 plans have an account owner and a beneficiary. Typically, a parent isRead More

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