Financial planning for parents.

READ2 min · UPDATED2026-04-30

Reviewed against primary sources cited at the bottom of this page.

529s, custodial accounts, and not sacrificing retirement. Your kids can borrow for college. You cannot borrow for retirement. That sentence is the whole framework.

This page covers personal finance fundamentals that apply regardless of your view on Bitcoin or fiat currency.

This page covers US-specific accounts and tax law. Outside the US? The principle (retirement before education) applies; the specific account types differ.

THE SHORT VERSION

Your kids can borrow for college. You cannot borrow for retirement. This is the most important sentence in parent financial planning. It does not mean don't save for college. It means never sacrifice retirement contributions to do it. This page builds the full picture: what accounts to use, in what order, and how to talk to kids about money before it becomes an emergency.

Start here

1 · THE ORDER

Order of operations for parents: retirement before 529s

Max your retirement accounts. Build emergency fund. Then 529s. The sequence matters more than the amount.

2 · THE EDUCATION ACCOUNT

529 plans: superfunding, state deductions, the Roth rollover

Tax-free growth and withdrawals for education. Up to $35,000 of unused funds can roll to a Roth IRA after 15 years.

3 · TEACHING THEM

Teaching kids about money

Custodial Roth IRAs for working teens. Allowance vs paid chores. Compound interest as a tangible thing.

Your most important tools

Compound Interest Calculator

Show your kid what $50/month at 16 becomes at 65. The number is staggering.

Student Loan Income-Driven Repayment

If college loans are already in the picture, model the realistic payback under different income paths.

Retirement on Track

Make sure you're not behind on retirement before you fund their future.

Common questions

529 or custodial account?

529 for college savings. Tax-free growth and withdrawals for education expenses. UTMA/UGMA for broader savings without the education restriction, but the child controls it at 18-21. Kids and money →

What if my kid does not go to college?

Up to $35,000 of unused 529 funds can be rolled to a Roth IRA after 15 years verify×DON'T TRUST, VERIFYClaim: Up to $35,000 lifetime in unused 529 funds can be rolled to a Roth IRA, subject to the 15-year-old account requirement and annual Roth contribution limit.Verify at: IRS guidance on SECURE 2.0 529-to-Roth provisions ↗SECURE 2.0 added this provision effective 2024. The IRS continues to publish implementation details.. So unused 529 money does not become trapped. 529 plans →

Should I pay off my mortgage or save for college?

Max retirement accounts first. Then model the mortgage rate vs expected return. College savings is third in the priority list. Order of operations →

Do I need life insurance?

If someone depends on your income: yes, term life. The amount is typically 10-12x annual income for the working years your kids are still dependents. Term vs whole life →

Reading path

Last updated 2026-04-30. Not financial advice. Do your own research.

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