Money Management

Many banks allow children to have accounts — but are your kids ready to open their own? Here’s how to decide. 

Many banks allow you to open a special bank account for children. But, just because you can get an account for your child does not necessarily mean you should do so. Before you sign your son or daughter up for an account of their own, there are a few things to think about.

Do they meet the bank’s minimum age requirements?

Your child’s account will typically need to be linked to your own bank account in some way, or managed by you as a custodial account, until they reach the age of 18. But some banks allow you to open separate children’s accounts as long as they are tied to yours.

There could be minimum age requirements, though. So, find out what those are first. If your chosen bank won’t give an account to a child under 6 years old, for example, you would need to wait at least that long.

Are they earning money (even from an allowance)?

A bank account is really only useful if you have money to put into it. If your child has none, there is likely little reason to open a bank account for them. In fact, if you plan to invest money for them that would be used for expenses like a college education, then a 529 plan may be a better option than opening a bank account and putting funds in there. Choosing an investment account allows you to earn a better return if the money won’t be used for a long time.

If your child is earning money, though — even from an allowance — then it makes sense to help them learn how to put some of it into the bank. Once they begin depositing money into a bank account, they can see how it grows and learn about how to manage financial goals over time.

Are they interested in managing money?

A bank account can help your child learn to manage money effectively, so they are more likely to save and less likely to go into credit card debt in the future. But they need to be interested in and ready to learn about financial responsibility before you open a bank account for them.

If they have no interest in keeping their money in the bank and keeping tabs on how the funds are growing, there’s little use in going to the trouble to open an account for them. In fact, trying to force them to start learning about financial responsibilities before they are ready could end up backfiring if they find money management to be just another frustrating task they’re required to complete.

Do they have financial goals?

Finally, consider whether your child has any financial goals. If they want to work toward something — even if it’s buying an expensive toy or video game system — then opening a bank account can help them do that. They’ll be able to see how socking away money in the bank over time will eventually enable them to be a success at achieving their objectives.

By paying attention to these signs that your child is ready for an account of their own, you can make a smart choice about when to help them get started in the world of consumer banking.

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Cryptocurrency and AI are new worlds that could transform our lives. But that may come at the cost of existing protections. Learn why that matters. 

A few years ago, cryptocurrency was on fire. From the supermarket checkout to family dinners, it seemed as if you couldn’t go anywhere without somebody bringing up Bitcoin (BTC). Today it’s artificial intelligence (AI) that’s got everybody talking. People say AI could do everything from providing customer service to driving cars and detecting serious medical conditions.

Depending on who you listen to, we’re either entering a dystopian nightmare or a utopian dream. The rise of AI certainly raises a lot of questions. One of which is connected with identity and what makes us human. Enter Worldcoin, a cryptocurrency created by Sam Altman, the man behind OpenAI and ChatGPT. And shiny bowling-ball sized orbs that scan your eyeballs and prove you’re human. And the promise of crypto tokens if you sign up.

What is Worldcoin?

Built on the Ethereum blockchain, Worldcoin uses blockchain technology to store what it calls “proof of personhood.” Essentially, it uses scans of people’s iris patterns to verify that they are human beings. As AI becomes a bigger presence online, the ability to tell the difference between people and robots will become ever more important.

That isn’t all Worldcoin wants to do. According to a letter from its founders, Worldcoin also hopes to contribute to democratic processes and address inequality. The thinking is that it will share some of the wealth created by AI and give people a universal basic income.

Worldcoin (WLD) tokens are not available in the U.S. for regulatory reasons. In other countries, once someone scans their eyes and gets a WorldID, they can install the World App and claim tokens, “simply for being a unique human.” AI may take our jobs, but that’s OK because we’ll get crypto tokens just for being us, I guess. People receive 25 WLD tokens for signing up, and then periodic grants afterward.

What could possibly go wrong?

I saw the film Oppenheimer last night. A movie about the creation of the atom bomb certainly gets you thinking about morals, scientists, and responsibility. The difficulty with a lot of new technology is that the types of people who are good at inventing aren’t always good at thinking through the consequences of their inventions.

Let’s take cryptocurrency as an example. The ideology of a decentralized system that works not only for money but also for identity is something I can get on board with. For example, right now, when you surf the web or use social media, you are giving a lot of your personal information to tech giants. One much-vaunted application of blockchain technology is that it can put you in control of your data.

This brings us to the question of digital identity and Worldcoin’s potential solution. Let’s say, ideologically speaking, that you don’t want the government or a tech giant to own and control your information. The promise of the blockchain is that it operates without the need for a centralized body. For example, in the future, a retina scan at border control might be stored on the blockchain rather than a government database. But then you have to ask about the role of intermediary organizations like Worldcoin — why would you trust it more than the government?

Orbs and eyeballs

Back to the orbs and their eyeball scans. According to Worldcoin, “The images of you and your iris pattern are permanently deleted as soon as you have signed up.” It says your iris pattern is used only to verify you’re a real person. The orb creates what’s called an IrisCode, which doesn’t contain any other information about you. You don’t need to give your name, email, or a copy of your ID.

On one level, that’s reassuring. But will Worldcoin be able to avoid any form of KYC (know your customer) policies forever? Centralized cryptocurrency exchanges around the world initially tried to avoid KYC, because ID checks don’t sit well with Bitcoin’s decentralized premise. They eventually bowed to regulatory pressure because the lack of KYC created an open playing field for fraud, money laundering, and other less-than-salubrious activities.

In terms of trust, Worldcoin has already come under fire for some of its initial attempts to collect information. Coindesk highlighted one shocking report from MIT Technology Review. “We found that the company’s representatives used deceptive marketing practices, collected more personal data than it acknowledged, and failed to obtain meaningful informed consent,” it said. The company told Coindesk it had since completely changed its systems and policies. Nonetheless, it isn’t reassuring.

Should you buy Worldcoin?

If you live outside the U.S., be wary about jumping on the bandwagon. Speculation is common in new tokens, especially ones that connect to trendy themes like AI. Worldcoin is not yet available in the U.S. However, its website says that World ID and World App are available in the United States.

WLD’s price spiked on its first day of trading, but what’s important is how it might perform in the long term. Do your own research, paying particular attention to WLD’s tokenomics. Bear in mind that a lot of Worldcoin’s model is based on giving tokens away. That means there’s going to be a lot of WLD tokens flying around, which will impact its price.

Bottom line

Our society isn’t perfect. However, there are laws and processes that have evolved over hundreds of years that give us rights and — to some degree — protect us from bad actors. In contrast, cryptocurrency and AI are relatively new worlds with very few protections. Right now, it’s important to ask, for example, who is auditing and policing organizations like Worldcoin. Personally, I’m not keen to scan my retina in exchange for 25 WLD — worth about $50 at today’s prices. I’d rather wait and see how the project develops.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

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I paid just $2,500 to live at a Colorado ski resort for a month. Read on to find out how travelers can score good deals by booking for a month. 

Several years ago, I was planning a months-long road trip with my family, and I knew immediately where our first destination would be: Colorado. I’ve lived up and down the East Coast my entire life and visited the West Coast several times, but I had never been to that area of the country.

Once we settled on Colorado, we opened the Airbnb app in search of an apartment that would be big enough for my family of four for one month, located somewhere relatively close to the Rocky Mountains.

We searched through a dozen or so apartment listings until we came across one that was just the right size for us, and because we booked for an entire month, we scored 50% off our stay, paying $2,565 compared to the usual price of more than $5,000.

Half-priced stay with full resort benefits

When we booked the apartment, we had no idea it was at a ski resort in Colorado. It was the beginning of the summer, so skiing was not on our minds at the time, and the pictures the Airbnb host had taken and the description of the place didn’t mention that the apartment was part of the small resort town.

When we finally got the address, I remember typing it into Google Maps, zooming in on the location, and realizing that for an entire month, we’d be staying at the foot of a mountain, surrounded by restaurants, shops, a mountain roller coaster, zip lines, and hiking trails.

Not only had we scored a fantastic half-priced deal, but we also stumbled upon an excellent Airbnb apartment entirely by chance.

The Airbnb host contacted us shortly after we booked and wanted to know if we would like a larger apartment — for a much higher price — instead of the much cheaper one. We declined and kept the booking for the cheaper apartment to stay within our budget.

We spent the month taking advantage of most of the resort amenities, visiting nearby towns, and having a snowball fight with my sons in June (a rare treat for a Southern-based family) because there was leftover snow from the winter.

You can find a good deal when you’re looking for one

If you’re using Airbnb for your next extended getaway, try searching for a date range of 28 days or more. If the host has set up a discount for month-long stays, Airbnb will display discounts of 10% or more. The app also allows hosts to set weekly discounts.

Of course, you don’t need to book an extended trip through Airbnb to find a good travel deal. According to Google, if you’re flying to a domestic destination, leaving on a Monday through Wednesday could save you 12% to 20% off your ticket price compared to weekend flights.

Setting up a vacation budget ahead of time is also a good idea. Figure out how much you’ll spend on travel expenses, lodging, food, and entertainment. You may also want to factor in miscellaneous costs that are sure to pop up while you’re traveling.

And finally, if you’re an avid traveler, consider a travel credit card. With these cards, you can earn rewards like travel miles and points you can redeem later for travel discounts. Some even offer free checked bags, so you don’t have to pay a luggage fee.

Sometimes finding great deals requires a little effort to stay within your travel budget, but it’s worth spending some time on it. My family had a general plan for where we wanted to stay and how much we wanted to spend, so that we didn’t derail our personal finances. This meant finding a half-priced deal was important for our trip.

Just maybe don’t pay too close attention to the finer details of a vacation rental when you book — you may be pleasantly surprised when you find out the address.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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