Summer is in full swing and the camps, vacations and trips are well underway. If you have a young adult in your household, this may be a time of ramping up resumes and earning some crucial spending money for them through a summer job.
My three kids have had a wide range of experiences in their summer jobs, but more than anything it taught them the value of a dollar and the importance of hard work. While these jobs helped them to cashflow their expenses throughout the year, it also taught them to save. Our “In-House Match” program was a parenting tool we used to reinforce the kids’ hard work and decisions to save and invest for their future. We would provide a 1:1 match for every dollar they saved in their Roth IRA up to the max allowed, while they lived at home.
While the dollar amounts were hardly earth-shattering, they have all learned from a young age the importance of saving for retirement. Not only did this help them to get used to living on less than they made, but it opened the door for other conversations (Why do we diversify? What is a beneficiary? How much do we need to retire? What even is retirement?). Financial education starts in the home and the summer is such a great time to dive into it! Your advisor can help you open a Custodial Roth IRA today!