Mesirow Wealth Advisor Offers Insights on Enhancing Children's Financial Future

Preparing Your Children for Financial Success

In the recent segment on WGN's "Your Money Matters," Jennifer Rosenblum, a Wealth Advisor at Mesirow Wealth Management, provided practical advice for parents concerned about securing their children's financial future. Emphasizing the importance of early action, she highlighted various financial instruments that can act as strong foundations for lifelong wealth.

Start with 529 Plans

According to Rosenblum, 529 plans are the cornerstone of education savings. These plans allow families to save for education with tax-free growth and can offer state tax credits in more than 30 states. "Parents often wonder where to begin," she explained. "The answer is simple: open a 529 plan. You can contribute as soon as your child has a Social Security number, and it allows anyone, including relatives and family friends, to contribute as well."

Starting early is crucial. College is one of the largest expenses parents face, and a 529 plan ensures that savings are maximized while parental retirement assets remain protected. "By initiating these savings sooner rather than later, parents can alleviate the future financial burden when college expenses arise," Rosenblum noted.

The Power of Roth IRAs for Teens

For children with earned income, Roth IRAs present an excellent opportunity for early financial growth. According to Rosenblum, even if a child has a part-time job, contributing to a Roth IRA can significantly boost their financial security in the long run. She recognized the challenges in motivating teens to save for retirement but suggested matching their contributions as an encouragement. "If you match what they put in, it can instill the importance of saving for their future," she stated.

This strategy allows modest contributions from summer jobs to grow significantly over time, leveraging the power of compounding interest.

Instilling Healthy Spending Habits

Rosenblum stressed the importance of teaching kids responsible spending habits from an early age. For younger children, using a debit card like Greenlight, which comes equipped with parental controls and budgeting tools, can be a valuable training experience. For older teenagers, becoming an authorized user on their parents' credit cards may help them establish a credit history while parents maintain control.

While Rosenblum noted, "Credit cards can lead to financial pitfalls," she also acknowledged that when used wisely, they provide financial security and build a pathway to independence.

The Role of Parents in Financial Planning

Rosenblum emphasized that parents need to take proactive steps in shaping their children's financial futures. The transition from tax-advantaged education savings to retirement tools is essential, and each financial instrument serves its purpose in laying the groundwork for future success.

Further, Mesirow Wealth Management prides itself on its personalized approach, aiming to connect clients with resources that matter to them now and in the future. Rosenblum's insights reflect the firm’s commitment to helping families navigate the complexities of financial planning.

About Mesirow

Founded in 1937, Mesirow is an independent and employee-owned financial services firm headquartered in Chicago. With a strong dedication to social good, they assist clients in achieving their financial goals through customized strategies. Mesirow has consistently been recognized as one of the best workplaces in Chicago and ranks among Barron’s Top 100 RIA firms. Visit Mesirow's website for more information on their services and approaches.

In conclusion, Rosenblum succinctly summarized the importance of early action: "Start now, and adjust as your child's circumstances evolve. Small, intentional steps today can yield powerful financial outcomes tomorrow."