You can't just put birthday money or an allowance into a Roth IRA. The IRS requires earned income.
April is National Financial Literacy Month , the perfect time to explore one of the most powerful wealth-building tools available to young savers: the . While retirement might seem lightyears away, starting a "financial gallery" of investments today can turn modest summer job earnings into a million-dollar legacy by the time you reach adulthood. 1. What is a Custodial Roth IRA? teen ira gallery
Think of your Roth IRA as a gallery where each contribution is a piece of art that grows in value over time. You can't just put birthday money or an
Starting a Roth IRA isn't just about the math; it’s about the habit. By opening one today, you aren't just saving for a distant retirement—you’re building a foundation of financial independence that will serve you for the rest of your life. While retirement might seem lightyears away, starting a
: The money in the account belongs to the teen, but the custodian manages it until they reach the age of majority (usually 18 or 21).
: You contribute after-tax dollars . This is a massive win for teens who are typically in a 0% or very low tax bracket.