JANE BRYANT
QUINN
AARP financial
journalist and author
of How to Make
Your Money LastHow and
when do I talk
to my teen
about college costs?
Start early. Khalfani-Cox
recommends broaching
the topic when your kids
finish middle school.
Ask about their favorite
subjects and discuss
what kinds of jobs are
related to each. Also,
get into some details
about college life, like
the pros and cons of
campus locations and
class sizes. And don’t
shy away from talking
about what your family
can afford. “Without
that knowledge, a teen
doesn’t have the full
picture of her options,”
Khalfani-Cox adds.
Encourage kids to
research scholarships,
grants, and paid
internships on their own.
“That will increase the
likelihood that they’ll
start pursuing activities
that will support their
academic interests,” says
Khalfani-Cox.WD’S MONEY EXPERTS
LYN NETTE
KHALFANI-COX
Founder and
CEO of
AskTheMoney
Coach.comSTEFANIE
O’CONNELL
Finance expert
and author of
The Broke and
Beautiful LifePRIYA
MALANI
Financial planner
and cofounder
of Stash Wealth
ManagementWe have a
new baby and
want to savefor his future. How
do we encourage the
grandparents to give
cash instead of gifts?
Say, “We’ve been
inundated with gifts and
would love it if you would
consider contributing
to his college fund
instead,” suggests
Lynnette Khalfani-Cox,
founder and CEO of
AskTheMoneyCoach
.com. Most grandparents
will be happy to support
your child’s future instead
of filling his toy bin.
The best way to save
for your new bundle of
joy is by opening a 529
plan, a state-sponsored
investment account
similar to a Roth IRA. You
won’t have to pay taxes
on the earnings on a 529
if you use the money to
cover college costs. Plus,
you can enroll in a plan
from any state, regardless
of where you live. Go to
savingforcollege.com
to compare the choices,
which range from
conservative savings
plans to aggressive
market-based strategies.
Then ask a financial
adviser for help finding
the best option.
teens about investing?
Apps like Acorns (acorns.com) and Stash
(stashinvest.com), which enable users to invest
small amounts of money in the stock market, can
be a fun way to introduce teens to the concept
of investing and automating their finances. But
make sure they have a firm grasp on managing
money first. Start them off with a standard
savings or checking account to illustrate the
importance of setting money aside and avoiding
debt. “Investing should only be done with a goal
in mind, like preparing for retirement or college,”
says financial planner Priya Malani. “Anything
else is just gambling.”Q
Q
My kids are jealous of things their
friends have that we can’t afford,
like new smartphones, name-brand
clothes, and the chance to attend fancy
sports camp. How can we discuss our family
budget without making them feel bad?“Explain your family values
in the context of what you will
or won’t pay for,” suggests
Khalfani-Cox. Her family
prioritizes spending on
education and travel over
material goods, so she reminds
her kids of that when they
ask for the newest shoes or
jeans. “I’ll tell it to them
straight. I say, ‘I don’t care
what other families are doing.’ ”