You probably know that adding to your family should make your financial plan. That’s especially true if the path to welcoming baby could include fertility treatments or adoption. It can also be crucial if you’re planning to finance their private school or college education. 

But did you know that your child will experience one of life’s major financial planning milestones almost as soon as they’re born? From the key moments all children and young adults share to other mini-milestones that you can add along the way, check out these key financial planning moments for children.

Birth and Early Years

As soon as your child is born, they’re afforded certain rights. They might be little, but they’re a living, breathing fully fledged human being with their own identity, which is recognized on their birth certificate. They’ll soon receive their very own Social Security number, which is where their financial life starts. That’s because a Social Security card allows you to do things like open a savings account in their name and claim them on your tax return.

Their early years can mean the beginning of their financial education, from learning to count coins to earning an allowance. As they grow, you have opportunities to teach them about and help them develop a healthy relationship with money. 

Outside of your home, they’ll likely have other chances to learn about money and how others interact with it. This can range from going grocery shopping with you to learning in school and doing math homework. 

If they’re also part of sports teams or clubs, they might have the chance to participate in fundraising events. From mattress and food sales (mmm … cookies!) to car washes and more, these can be great ways for kids to learn the value of money. 

Teen Years

In their teen years, your child will reach more milestones that all kids share. These include …

Working

While not all teens are gainfully employed, many begin their working years here. Children can start working — with certain restrictions — at age 14 with a work permit. And with earned income comes the opportunity to open and contribute to a Roth IRA!

Earning their own income can lead to them making important spending and saving decisions. With cash flowing in, it’s a great time for a child to deepen their budgeting skills. Income also means that they may be required to file their first tax return! 

Driving

Teens can also begin driving between ages 14 and 16, depending on their state of residence. From learner’s permit to driver’s license and driving your vehicle to having their own, driving can allow teens to become more independent. Just don’t forget to add your child to your auto insurance policy when they get behind the wheel!

Adulthood

While it’s common to hear that children become legal adults at age 18, your child’s state of residence actually sets that age. It’s called the age of majority, and it can be as old as age 21 in some states! 

And even if your child has reached legal adulthood, if they’re in school full-time, they could be your dependent for years to come.

One more major milestone in a child’s life? Well, they might not be a child anymore, but they can generally stay on your health care plan until age 26.

And then? They’re off! Onto the financial planning moments for adults.

Pro Tip: Ready for your child to start investing? We offer Limited Services Agreements that allow us to provide members of your household with investment management services! That means your children can sign limited agreements under the umbrella of your own Comprehensive Services agreement. 

We can then assist them in opening accounts and investing for their futures, whether they’re planning to further their education, buy a home, or enjoy a great gap year. If you have questions about getting them started, reach out to hello@fpfoco.com!  

And don’t forget to let us know about your child’s next milestone. We can help you prepare, whether they’re a glimmer in your eye or getting ready to hit the road for the first time!