Kids are 5 and 7. Any money they receive goes into a single HYSA and we keep track of what belongs to who.
I want to open a single custodial brokerage account, ditch the HYSA, and put the money into index funds and let it ride until they need to buy a house or something.
Wife wants to open a 529 for the tax advantages but I don't like the idea of giving up freedom for what the money can be used for.
Anyone have any compelling arguments for one or the other, or something entirely different? Grandparents prefer to give them checks instead of a ton of toys, and my wife and I contribute a little $ every month, so at their young age they already have a chunk of change.
I believe the custodial brokerage account becomes theirs once they are of legal age, so we'll have to get creative to keep them from digging into the account before they need to.