A few teenagers out there might have landed summer jobs and by now are full swing into part time employment. It’s a great time to introduce a few money concepts to teens. Help them open a checking and savings account. Introduce them to payroll taxes (always fun learning you don’t actually get to keep your hourly wage times all those hours). Encourage teens to set some long-term savings goals with their summer earnings.
Parents can also encourage teens to file a tax return and contribute the amount of their teen’s earned income (up to $5,000) in a Roth IRA in their name. Can you imagine dumping a couple thousand into a Roth IRA when you’re 16? Talk about getting a jump on becoming a millionaire!