Anonymous
Post 07/13/2023 09:17     Subject: Re:Does your teen have their own IRA or Roth?
Anonymous wrote:This is great for those of you who can swing it - but also, matching money or saving for them so they can keep their earnings as spending money isn't really teaching them about money, though it's certainly setting them up to not have to worry about it in the future.

We need our kids to help pay for car insurance, gas, etc. and also to save for college with their earnings. With our household parental income (which must be much less than a lot of you), I don't think we'll also be able to start retirement accounts at 13.


You do your best. No mandates.
Anonymous
Post 07/13/2023 08:55     Subject: Re:Does your teen have their own IRA or Roth?
This is great for those of you who can swing it - but also, matching money or saving for them so they can keep their earnings as spending money isn't really teaching them about money, though it's certainly setting them up to not have to worry about it in the future.

We need our kids to help pay for car insurance, gas, etc. and also to save for college with their earnings. With our household parental income (which must be much less than a lot of you), I don't think we'll also be able to start retirement accounts at 13.
Anonymous
Post 07/13/2023 08:34     Subject: Does your teen have their own IRA or Roth?
Anonymous wrote:OP here. I will sit down with DD (18 yo) and open a Fidelity Roth with her online. I’d like to make her use a portion of her own summer job money (vs entirely parents funding) so she feels like she is responsible for her finances and she gets in the habit. Of course, we will continue giving cash gifts that hopefully she will invest in the Roth, after she enjoys some for college extras and travel.


49 yr old w/30-yr IRA here. My parents explicitly gave gifts as matching money (or just investment money) the first two or three years. They didn’t hope; it was more of a led development of the habit. Incredibly effective.

You are giving a huge gift that far surpasses the dollars involved! When my parents started this the max contribution was $2k/year.
Anonymous
Post 07/13/2023 07:50     Subject: Does your teen have their own IRA or Roth?
We did it once he got a w-2. We didn’t try to do it for dog walking/babysitting because it’s not really clear if that qualifies and my spouse is really careful about those things.
Anonymous
Post 07/13/2023 07:44     Subject: Does your teen have their own IRA or Roth?
Anonymous wrote:OP here. I will sit down with DD (18 yo) and open a Fidelity Roth with her online. I’d like to make her use a portion of her own summer job money (vs entirely parents funding) so she feels like she is responsible for her finances and she gets in the habit. Of course, we will continue giving cash gifts that hopefully she will invest in the Roth, after she enjoys some for college extras and travel.


I think every parent think that way but temptation of spending vs saving is difficult to overcome for young people (well, even old people). Full funding (for a few years) is not a bad idea. good luck.
Anonymous
Post 07/13/2023 07:42     Subject: Does your teen have their own IRA or Roth?
Anonymous wrote:Do they have yo have income from jobs where taxes are withheld, or just like babysitting or or lawnmowing?


No it does not need to be taxable income but I would have some documentation...like dates earned, job done. It can not be for home chores.
Anonymous
Post 07/13/2023 07:23     Subject: Does your teen have their own IRA or Roth?
OP here. I will sit down with DD (18 yo) and open a Fidelity Roth with her online. I’d like to make her use a portion of her own summer job money (vs entirely parents funding) so she feels like she is responsible for her finances and she gets in the habit. Of course, we will continue giving cash gifts that hopefully she will invest in the Roth, after she enjoys some for college extras and travel.
Anonymous
Post 07/13/2023 06:55     Subject: Does your teen have their own IRA or Roth?
^ should clarify… most of 200k is not in Roth. Just regular brokerage accounts. Some in Roth.
Anonymous
Post 07/13/2023 06:44     Subject: Does your teen have their own IRA or Roth?
We have older kids but I still manage the accounts I opened for them when they were in HS. All three kids have about 200k each now.
Anonymous
Post 07/13/2023 06:04     Subject: Does your teen have their own IRA or Roth?
DD has her first real job this summer and I plan to match her earned income dollar or dollar and open her Roth IRA as soon as she receives her stipend check. She is 17.
Anonymous
Post 07/13/2023 06:01     Subject: Re:Does your teen have their own IRA or Roth?
Anonymous wrote:PP - your 13 year old earns money? Why?


That was several years ago, but in these ways:

Pet sitting

Dog walking

Lawn watering and plant watering while neighbors are away

Mother’s helper

Oh, you asked why, not how. Because neighbors asked if there was interest in doing this or that for a little money and the kid said yes.

Anonymous
Post 07/12/2023 23:56     Subject: Re:Does your teen have their own IRA or Roth?
PP - your 13 year old earns money? Why?
Anonymous
Post 07/12/2023 23:49     Subject: Re:Does your teen have their own IRA or Roth?
We did it for our kids: 13 for one kid and 14 for the other. Like everyone else: as soon as each had earned income. We deposit an amount equal to their earnings each year and this year I think one kid will exceed the max in earnings, so will just contribute the max allowed for that one. The kids are savers, so that’s an additional good thing.
Anonymous
Post 07/12/2023 22:37     Subject: Does your teen have their own IRA or Roth?
No - their moved saved is for college or grad school right.

My oldest is 13 and I honestly didn’t think about it until this post and having thought about it - I probably still won’t do it but maybe I’ll think about it a bit more.
Anonymous
Post 07/12/2023 22:36     Subject: Does your teen have their own IRA or Roth?
I'm so fortunate my first job required contributions to retirement. They automatically put in 10 percent of our salary on top of the salary. My parents taught me nothing about money and I would have been so screwed if the job didn't do that. I was bummed at the time, skimping to pay off loans and wanted the cash, but now so grateful.

It's wonderful you're all thinking about this for your kids and teaching them. It's a huge gift.