How do I fill out the FAFSA?

File at studentaid.gov starting October 1. You'll need: FSA ID, Social Security numbers, tax returns, bank statements, and investment information. File early — many aid programs are first-come, first-served.

Should I take out student loans?

Borrow only what you need and only federal loans first (lower rates, income-driven repayment options). Never borrow more than your expected first-year salary. Subsidized loans don't accrue interest while in school.

Birth Toddler Kids Tweens & Teens College & Grads18–24 Young Adults Adults & Married Mid-Life Pre-Retirement Retired Legacy

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Birth Toddler Kids Tweens & Teens College & Grads18–24 Young Adults Adults & Married Mid-Life Pre-Retirement Retired Legacy

Ages 18-24 mean FAFSA applications, student loan decisions, and first budgets. This guide covers financial aid strategy, student loan repayment planning, Roth IRA advantages for young adults, credit card building, and degree ROI analysis.

6 min read

Roth IRA: Why Starting Early Is Powerful

$500/month starting at 22 grows to $1.9M tax-free by 65. Start at 30 and you'll have $600K less. Time is everything.

The Power of Starting at 22

A Roth IRA's tax-free growth is powerful at any age. But starting 8 years earlier adds $600,000 in tax-free wealth with the exact same monthly contribution.

$1.9M

Start at 22 → Age 65

$500/month, 10% return

$1.3M

Start at 30 → Age 65

Same $500/month

$600K

8-Year Head Start Value

Extra wealth from starting early

$500/month: Start at 22 (green) vs. Start at 30 (gray)

Start at 22

Start at 30

Why Roth Over Traditional?

Roth IRA vs Traditional IRA

Feature	Roth IRA	Traditional IRA
Tax on Contributions	Taxed now (low bracket!)	Deductible now
Tax on Withdrawals	TAX-FREE forever	Taxed at future rate
Best When	Low income now (college!)	High income now
Required Distributions	NONE ever	Must withdraw at 73
Early Withdrawal	Contributions anytime	10% penalty before 59½

College = Lowest Tax Bracket

You're in the 10-12% bracket now. Pay tax on contributions today and NEVER pay tax on the growth. If your income rises to 32%+ later, you'll be glad you locked in the low rate.

How to Start with Little Money

Open at Fidelity or Vanguard

No minimums. Takes 15 minutes online. Choose 'Roth IRA' account type.

Start with $25-$50/month

Set up auto-invest. Even $25/month at 22 = $150K+ by 65.

Buy One Fund: Target Date

Pick the target date fund closest to your 65th birthday. Done.

Increase with Every Raise

Bump contribution by $50 every time income goes up. You won't miss it.

$50/month × 43 years × 10% avg return = $470,000 (tax-free)

Even tiny amounts become massive with 40+ years of compound growth

The Emergency Backup Feature

Contributions Are Accessible

Unlike a 401(k), you can withdraw Roth IRA contributions (not gains) anytime, penalty-free. It doubles as a last-resort emergency fund while your money grows tax-free.

Don't Actually Use It

Just because you CAN withdraw doesn't mean you should. Every $1,000 withdrawn at 22 costs you $45,000 in tax-free growth by 65.

Key Takeaways

Starting at 22 vs 30 adds $600K in tax-free wealth (same contributions)
College = lowest tax bracket — lock in cheap taxes on Roth contributions now
Even $50/month at 22 becomes $470K by 65 (tax-free)
No required minimum distributions — unlike Traditional IRA or 401(k)
Contributions (not gains) are always accessible penalty-free

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