Your Kids Are Growing Up. Is Their Money?

Monthly Money Man on April 24, 2026

There’s a photo on my phone I keep coming back to. My oldest, maybe three years old, grinning at the camera with ice cream on his chin sitting next to my nephew and not a care in the world. I look at it now and think: where did the time go?

If you’re a parent, you know the feeling. The days can drag, but the years sprint. And somewhere in the middle of school activities and the chaos we call life  and “Dad, will you play with me?” — time has a way of slipping past without you noticing.

Here’s what I’ve learned after years of helping friends and families manage their money: the clock ticking in the corner of your living room is also ticking in their portfolio. And one of the most powerful tools for fixing that — a Roth IRA for teenagers — is one almost nobody is using.Your kids are going to grow up whether their money is ready or not. The only question is whether you gave their money the same head start you’re trying to give them in other areas of their life.

A Quick Word About Time

If you caught last week’s article on compounding, you already know the secret: time is the most powerful ingredient in building wealth, and it’s the one thing you can’t buy more of. The earlier money goes to work, the less of it you need to get somewhere meaningful.

Which brings me to something most parents have never considered — and once you hear it, you won’t be able to unhear it.

Your teenager might have access to one of the best wealth-building tools in existence-a Roth IRA for teenagers and almost nobody is using it.

The Roth IRA for Teenagers Your Family Could Open This Year

Most people think of a Roth IRA as a retirement account for adults with careers. But here’s what the fine print actually says: any person with earned income can contribute to a Roth IRA. That includes your 15-year-old — as long as they have wages from a W-2 job or documented self-employment income like babysitting, tutoring, or lawn mowing reported on a tax return.

Here’s why that matters so much. A Roth IRA grows tax-free. Your child contributes after-tax dollars now — and never pays taxes on the growth. Ever. When they withdraw in retirement, it’s all theirs.

Now layer on the compounding math. A teenager who puts $1,000 into a Roth IRA at age 16 and earns a modest 7% average annual return will have — without ever adding another dollar — over $50,000 by retirement. That’s the runway no adult account can replicate. We simply don’t have it anymore.

The contribution limit is $7,500 per year in 2026, but it can’t exceed what your child actually earned. So if they make $2,000 this summer, they can contribute up to $2,000. And here’s a move a lot of parents make quietly: you can gift them the money to contribute, as long as the contribution doesn’t exceed their earned income. They did the work. You fund the future. Everyone wins.

One note: if your teen’s income is from informal work — babysitting, odd jobs, neighborhood gigs — make sure it’s being reported properly. When in doubt, a quick conversation with a CPA can save a headache later.

What About a 529?

A 529 plan is the other heavy hitter worth knowing about. It’s specifically designed for education expenses — think college tuition, room and board, even K-12 in some cases. Your contributions grow tax-free, and withdrawals are tax-free when used for qualified education costs. Many states even offer a tax deduction for contributing. It’s a powerful tool, and it deserves its own full article — which is coming. For now, just know it exists, it’s worth exploring if college is on your horizon, and it pairs beautifully with a Roth as part of a bigger picture for your child’s future.

Start Before the Next Photo

You’re going to take another picture this weekend, or next week, or at the next birthday party. And someday you’ll scroll back to it and feel that same bittersweet rush — when did that happen?

Before then, do one thing. Find out if your teenager has any earned income this year. If they do, look into opening a custodial Roth IRA-thats the version designed for minors-before the next contribution deadline. It doesn’t have to be perfect. It just has to start.

Summer job season is right around the corner. We’ll be talking about that in July — and when we do, you’ll already know exactly what to do with the money your kid brings home.

See you at the top.

[Call to Action] Does your teen have a summer job lined up? A Roth IRA could be the best thing that comes out of it. Start by looking into a custodial Roth IRA at any major brokerage — Fidelity, Schwab, and Vanguard all offer them with no minimums to open.

Pay Yourself First: How to Build Wealth on Autopilot

Monthly Money Man on March 20, 2026

When I was managing money for clients, I saw a pattern that repeated itself over and over again.

The people who built real wealth weren’t necessarily the ones making the most money. They were the ones who had set up systems that worked automatically, without requiring daily willpower or discipline.

The most powerful system? Pay yourself first.

You’ve probably heard this phrase before. Maybe you’ve even tried it. But here’s what I learned watching hundreds of people succeed (and fail) at this: it’s not about intention. It’s about mechanics.

What “Pay Yourself First” Actually Means

It’s simple: before your paycheck hits your checking account and becomes “available” to spend, a portion of it goes somewhere else. To savings. To investments. To your future self.

Not what’s left over at the end of the month. Not “if there’s extra.” First.

I remember sitting with a couple in their early 30s. They made good money—combined household income over $120,000. But every month, they felt broke. Every single month.

“We just don’t know where it goes,” they told me.

I asked them to show me their savings rate. Zero. Because they were trying to save what was left over. And there’s never anything left over when you do it that way.

The Psychology Behind Why This Works

Here’s the truth about human behavior and money: we spend what we see.

If you have $3,000 in your checking account, you’ll find a way to spend closer to $3,000. If you have $2,400 in your checking account, you’ll find a way to live on $2,400.

The difference? That $600 that never showed up in checking went straight to savings the day your paycheck deposited.

This isn’t about deprivation. It’s about making the right choice the easy choice. You’re not fighting yourself every month trying to be disciplined. You made the choice once, set up the system, and now it runs on autopilot.

How to Set Up the System

Step 1: Decide on a percentage

Start with 10% if you’re new to this. Already saving? Push it to 15% or 20%. The exact number matters less than the fact that it’s automatic and consistent.

Step 2: Split your direct deposit

Many payroll systems let you split your direct deposit between multiple accounts—check with your HR department to see if yours does. This is the absolute best way to do it.

  • Option A: Have your employer deposit 10% directly into your savings account and 90% into checking
  • Option B: If your employer doesn’t allow splits, set up an automatic transfer on payday from checking to savings

Step 3: Make it immediate

The transfer should happen the same day you get paid—or before you even see the money. If you wait until the 15th of the month to manually move money around, you’ve already spent it in your head.

Step 4: Treat it like a bill

That 10% (or 15%, or 20%) isn’t optional. It’s not negotiable. It’s the first bill you pay every month. The bill is to your future self.

Where the Money Should Go

This depends on where you are in your financial journey. Use this priority order:

First priority: Build your Safety Net #1—one month of expenses in cash. Until you have this, every dollar you’re paying yourself first goes here.

Second priority: Get your employer match in your 401k or 403b (if it’s 50% or higher). This is the only time I’ll tell you to invest before paying off high-interest debt. Here’s why: if your employer matches 50 cents on every dollar you contribute, that’s an instant 50% return. You can’t get that anywhere else. You also can’t go back in time and claim matches you missed.

Even if you’re carrying credit card debt at 18%, you need to contribute enough to get that full match. Yes, you’re still paying interest on your debt. But you’re also getting free money that will compound for decades. We’ll talk more about balance transfers and refinancing strategies in August—there are ways to lower that interest rate on your debt. But there’s no way to recapture an employer match you let slip away.

Plus, getting that match forces you to learn to live on what’s left. That’s the system working.

Third priority: Pay off high-interest debt (anything over 10%). If you’re carrying credit card debt at 18% or 24%, paying that down is paying yourself first. You’re getting an immediate 18% return. In August, we’ll dive deep into avalanche vs snowball methods and strategies for tackling this.

Fourth priority: Max out your Roth IRA. Once you’ve got your cash reserve built and you’re getting your employer match, this is your next move. We’ll cover Roth IRAs in detail in April and May, but the short version: tax-free growth for the rest of your life. If you got a tax refund and you’ve checked the first two boxes, this is where that money should go.

Fifth priority: Go back to your 401k and increase your contribution beyond the match. Push toward 15% total retirement savings.

What If You Can’t Afford 10%?

Start with 5%. Or 3%. Or even 1%.

The amount is less important than the system. Get the mechanics in place now. A year from now when you get a raise, increase it to 6%. Then 8%. Then 10%.

I’ve seen people go from saving nothing to saving 20% of their income. It didn’t happen overnight. It happened by setting up the system and then adjusting the percentage every time their income increased.

The Backpack Check

Think of this as one of the most important items you’re carrying in your financial backpack: the habit of paying yourself first.

It’s not heavy. It doesn’t require daily attention. But it’s the difference between arriving at the summit with resources—or arriving exhausted and empty-handed.

Set it up once. Let it run. Watch what happens over the next five years.

Action step for this week: Log into your bank or payroll system today. Set up that automatic transfer. Even if it’s just 5% to start. Make the decision once so you don’t have to make it every month.

See you at the top.