616 | How Should You Give Money to Your Kids? | 529s, UTMAs, Trump Accounts & More

About this episode

Most parents rush to open 529 plans for newborns, convinced they're building their child's future. But here's what financial experts won't tell you: that decision might be destroying more value than it creates. The accounts marketed most aggressively to new parents often provide minimal benefit while eliminating the flexibility you'll actually need. Topics Discussed Introduction and Episode Framework (00:00:00) Brad Barrett sets the stage with Sean Mullaney and Cody Garrett for a discussion on gifting to children, account options, and the critical importance of maintaining optionality in financial planning. Motivations for Saving for Children (00:03:15) Cody Garrett presents ChooseFI community research revealing four primary motivations: giving children more options, helping them avoid debt struggles, protecting from hardship, and developing healthy money habits. Parental Financial Sufficiency First (00:10:30) The oxygen mask principle—parents must secure their own financial stability before transferring wealth to children. Parental financial instability creates burden for adult children. Three Objections to Early Transfers (00:15:45) Sean Mullaney outlines three major objections: