Can a teenager open a Roth IRA?

Yes — a custodial Roth IRA can be opened for any minor with earned income (babysitting, lawn mowing, part-time job). They can contribute up to their earned income or $7,000, whichever is less. Even $1,000 at age 15 grows to $30,000+ by 65.

Should I add my teen as an authorized user on my credit card?

Yes — if you have good credit, adding them builds their credit history before they apply for their own card at 18. Set a low limit, monitor spending, and use it as a teaching opportunity.

Tweens & Teens (11–18)

Key Topics

What to focus on

Custodial Brokerage Accounts

Authorized User Credit Building

First W-2 Job & Tax Filing

Custodial Roth IRA

Expense Tracking Basics

Entrepreneurial Side Hustles

Building Real Financial Skills

Custodial Brokerage Accounts (UGMA/UTMA)

Open a custodial account and help your teen buy their first fractional shares. Index funds are a great start — they learn about markets, dividends, and long-term growth firsthand.

Build Credit as an Authorized User

Adding your teen to your oldest credit card (with a good payment history) instantly gives them a credit score. By 18, they could have a 750+ score without ever applying for their own card.

First Job & Tax Filing

When they get their first W-2 job, walk them through a tax return. If they have earned income, open a Custodial Roth IRA — dollars invested at 16 could grow 50x by retirement.

Entrepreneurial Side Hustles

Encourage monetizing hobbies: tutoring, lawn care, baking, reselling, or freelance design. This teaches pricing, customer service, and basic business accounting.

Recommended Tools

Calculators for this stage

Compound Interest Calculator

Tax Bracket Calculator

Budget Planner

Expense Tracker