The best gift you can give your kid might not be a pile of money. It might be the option to take a breath, make a better decision, and not have to trade their values for the paycheck. And if that's not wealth, I genuinely don't know what is.

Hello, friends. This is Tyler Gardner, welcoming you to another episode of your Money Guide on the Side, where it is my job to simplify what seems complex, add nuance to what seems simple, and learn from and alongside some of the brightest minds in money, finance, and investing. So let's get started and get you one step closer to where you need to be.

There's a strange moment in every parent's life when you realize your child has no concept

of taxes, rent, or the tragic economics of buying popcorn at the movie theater. They believe

money comes from thin air, or your phone,

or, if they're slightly more financially literate, a small, magical debit card named Mom.

And yet, here you are, listening to a podcast episode titled, How to Make Your Kid Richer Than You Ever Were,

which is very noble, slightly masochistic, but very noble. Now, let me be clear. I'm not saying

your nine-year-old needs a brokerage account, a Roth IRA, and a six-part estate plan by Labor Day. But I am saying that

small steps now, boring, paperworky, barely even Instagramable steps can turn into serious wealth later.

And I don't mean Lamborghini wealth. I mean choices. Flexibility, the ability

to take a sabbatical or turn down a job that requires a lanyard. In this episode, we're going

to cover three surprisingly powerful tools. Number one, the custodial brokerage account,

aka Baby's first capital gains tax. Number one, the custodial brokerage account, aka Baby's First Capital Gains Tax. Number two,

the custodial Roth IRA, aka give your kid the superpower of tax-free growth before they even

understand what a tax bracket is. And three, the 529 plan, aka college is coming and textbooks are not getting any

cheaper. Each of these accounts has pros, cons, and most importantly, a couple landmines that we need

to avoid, because yes, your child might one day thank you,

or they might use the money to invest in a llama-themed NFT.

We can't control the future, but we can set it up better.

Also, if this episode helps you, or if you just want to support this show in the same way your child supports their Roblox addiction, please consider leaving a review on Apple Podcasts.

Or share it with a friend who you think might learn something.

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