#243: Your Choices Determine Your Path (Friday, August 26)

I am not the aunt or godmother that'll do arts and crafts with the kids. I can't solve a Rubix cube in a few minutes. I suck at video games, I don't know how to ride a bike and my magic tricks never work. But I'm great at money management, and that's what I hope to impart on my nieces, nephews, godchildren and the like.

I want them to know at a very young age, as I did, the value of money and that their financial choices will help to determine their lot in life. Just consider these 3 scenarios from children in my life:

1. I started to open a 529 for Child #1; the mom said she'd rather do it through work so she could do direct deposit. Three follow-ups later, Child #1's mom still hadn't made a move. It's been a dozen years...and Child #1 doesn't have a plan.
2. Learning my lesson, I opened a 529 plan for Child #2. I told the parents that I had done so, and gave them the information so they could contribute. Five years later, I'm still the only person contributing to the plan, and they don't have another account.
3. I also opened a 529 plan for Child #3 and shared the information with the parents. They made contributions and linked up their cards. Now when any of us shop (or when I dine at certain restaurants and pay with my card), a portion of our purchases goes directly into Child #3's account. The account value is already higher than that of the 529 account opened five years prior with the same amount.

Three set of parents, three different choices...but each will have an impact on their child's attitude about money and also on the child's future (Child #1 won't have a college fund to help pay for books, tuition and other expenses.).

Think about your choices...