One thing all parents have in common is wanting what’s best for their kids. We all want to give our kids ample opportunities for success. We all want to keep them rooted in family values. And we all want them to have a fair shot at life.
When it comes to money, we typically want to give our kids ample support without spoiling them too much. Most of us don’t want our kids to win the lottery, though. We’d much rather our kids build some character through struggle and sweat equity. Nothing gives young people an appreciation for higher education than working a few arduous, low paying jobs.
From a financial perspective it’s difficult balancing these objectives. How do I help my kids financially without spoiling them? How do I teach them fiscal responsibility? How can I show them the power of long term tax advantaged compounding?
These a few questions our clients at the financial planning firm often ask. The answer is often the Roth IRA.
This post covers why that’s the case, how you can set one up for your kids, and when & how to contribute to one.