Our Baby is Growing

1. Who’s monitoring your kids’ credit?

College-age kids are prime identity theft targets precisely because nobody is watching the file. The damage often isn’t discovered until they apply for their first car loan or apartment. Freezing their credit is free, takes a few minutes with each bureau, and shuts the door on anyone trying to open an account in their name. On the flip side, if you haven’t already, adding them as an authorized user on your credit card is an easy way to start building the credit history they’ll need later on.

2. Is your little baby now a legal adult?

Once your child turns 18, the law sees a full-blown adult, and that catches a lot of parents off guard. You lose the automatic right to their medical information, their financial accounts, and their grades. A HIPAA authorization, healthcare proxy, and durable power of attorney mean you can actually step in if they’re hospitalized three states away. A FERPA waiver can allow their school to share information on their grades and their bill (the one you’re paying). While you’re at it, confirm you’re listed as their emergency contact, and talk through how and when you’d respond if something happened.

3. Are you kids on your car insurance? When was the last time you spoke to them about drinking and driving?

There’s an exciting time in every parent’s life when their child starts to drive. No longer are you the on-call chauffeur, but now there’s the added expense (and fear) that comes with your child on the road. Keep in mind that if something happens while your child is driving and they’re on your policy, your assets are exposed. As they move further into young adulthood, it’s worth asking whether their own policy makes more sense.

And keep having conversations about drinking and driving. If it’s becoming a concern, don’t wait. It’s 2026 – an Uber or Lyft account is a whole lot cheaper than the alternative.

4. They’re on your health insurance until 26, but can they actually use it?

Your kids can stay on your health insurance plan until 26, so this isn’t often top of mind. But “on your plan” and “covered where they are” aren’t always the same thing. If your network is regional and school is out of state, your child may effectively have emergency-only coverage. Meaning a strep test at an urgent care near campus could come back as an out-of-network bill. Take the time to check whether there are in-network providers near their school, what the campus health center actually handles, and whether the school’s own student plan is worth the cost. While you’re at it, make sure your kid knows where to go when they’re sick and has their insurance card or a photo of it.

5. Are you using the right investment account for your kids? – 5

There are a lot of ways to save for your kids’ future, and the right one depends entirely on what you’re saving for. We put together a guide that breaks down the purpose of each account along with the pros and cons. Take a look at the full chart here.

One thing worth noting: 529s, taxable investment accounts, and IRAs, have been around for a long time. They evolve, but we have a good understanding of how they play out. The new Trump accounts are a different story. Guidance is still being proposed, so those are ones we’re watching closely as developments come. 

6. Do you have a plan for how you’re using your 529?

Whether you’re managing a 529 yourself or a grandparent set it up, is there a strategy behind how you’re pulling the money out? For a lot of families, the honest answer is “I’m not sure” and that’s exactly when we’d like to hear from you. So it’s a plan instead of a guessing game.

Remember that tuition isn’t a once-a-year event. Depending on where your child goes to school, you’re making distributions multiple times a year. So, while you can breathe a sigh of relief now that fall is paid, the next one will be here before you know it.

For clients whose 529 we manage, know that we handle all of this for you. All you need to do is let us know where the funds should go.

Warmly,

Jacklyn Hart

Client Relationship Manager