Kimberly Palmer: Smart steps to take when helping your grandchildren financially
By KIMBERLY PALMER of NerdWallet
Grandparents often want to help their grandchildren financially, but they aren’t always sure where to start. The first step, financial experts recommend, is to guard against being overly generous, which can hurt grandparents’ own finances. Experts caution against co-signing loans with grandchildren, for example, because doing so can harm grandparents’ credit history. Other suggestions include talking to the parents first before giving a gift and fostering open conversations about money with grandchildren. Sometimes, putting money into an account earmarked for education makes the most sense, or helping grandchildren get started on their own retirement savings through a Roth IRA account.
