Enough to do anything

Somewhere this month, a kid is climbing onto a school bus. Their backpack is as big as they are. A parent on the sidewalk is pretending not to cry.

If you've been through it, you know this feeling. Life is long, but time goes fast. One day it's a car seat, the next it's a dorm room, and somewhere in between you start wondering if you've done the money lessons right.

These types of questions come up in almost every discussion we have with clients. Usually it sounds like: I want to help them, but I don't want to mess them up. It's a valid concern.

Warren Buffett put it well when he suggested providing enough to do anything, but not so much they can do nothing.

Here's how we think about it. The goal isn't to raise a Richie Rich. It's to raise a kid whose money habits look a little more tortoise and a little less hare. Patient. Consistent. A disciplined approach repeated again and again, until it becomes second nature.

Good news: the accounts that help you do this already exist. Below is a quick tour.

The 529 is the one most people know. It's built for education, it grows tax-free, and it has become more flexible in recent years; leftover funds can now roll into a Roth IRA for the child later on, up to a lifetime limit of $35,000 as of this writing.

Newer is the Trump Account, a federal program for young children. Eligible kids (those born between 2025 and 2028) receive a one-time $1,000 government deposit, and families can add each year. The real draw is the free seed money. Worth doing if your child qualifies, but we prefer to save elsewhere.

A custodial account like a UTMA is the flexible option. Money is set aside for the child and can be used for almost anything. The important catch: it becomes legally theirs once they hit the account's set age (often 21, though it varies by state), with no conditions attached. That's fine if your lessons have taken hold, and less fine if they cash out at 21 and spend it like a lottery winner.

The most overlooked is a Roth IRA for a child with earned income. A teenager with a summer job can fund one, and that money grows tax-free for decades. The amounts are usually small, but the lesson is the point: money is earned first, then left to grow, rather than something that simply appears.

A trust is the option for larger sums, or when you want more control over that "becomes theirs at 21" problem. You set the terms, the timing, and the conditions. Worth having when the amounts are meaningful.

Few families need all five. Most use two or three, matched to their goals and how much control they want to keep. The best mix looks different for everyone.

We've put together a simple breakdown of these accounts, what each is for and where it fits, for your review.

You can't control everything ahead. But you can start early, stay consistent, and give your money the time to do its job. If any of this is on your mind, we'd love to talk it through. Please reach out to our team and let's schedule a call.

Paradigm Child Savings One Pager (Fall 2026)