06/15/2026
Their first paycheck is more powerful than they know.
Summer jobs are often framed as spending money — gas, clothes, a little independence. But for parents paying attention, a teen's first earned income is actually a rare financial opportunity that most families overlook entirely.
Here's what changes the moment your child earns their first paycheck: they become eligible to open a Roth IRA.
A Roth IRA requires earned income — not gifts, not allowance — which means a summer job is the key.
Contributions grow tax-free, withdrawals in retirement are tax-free, and starting at 16 or 17 gives that money 50+ years to compound before it's ever needed.
A few questions we help families think through:
These aren't complicated conversations, but they're ones that are easy to put off — and putting them off is the only real mistake.
If your teen worked this summer, we'd welcome a conversation.
Give us a call or schedule time with our team. We're happy to walk through the options with you, no commitment required.
Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted.
