Building credit and financial planning for teenagers
Hello, I have 2 teenage sons (18 – a freshman in college and 17-a junior in high school). I am trying to teach them about the importance of saving, planning for retirement and building credit. They both have part-time jobs. What is the best way to build credit? Should/can they invest in a ROTH IRA? Any other suggestions would be so helpful. Thank you, Lori
Terry Says
Since they have some earned income, it might be a good idea to convince them to put some of their money in a Roth IRA — and you might match their contribution up to the allowable amount.
As for credit cards, you might want to search at CreditCards.com for a secured credit card for students — secured by a deposit in a savings account at the issuing bank. Here’s a direct link to that info: https://www.creditcards.com/best-credit-cards/
And check out this Fidelity program for teens and money: https://www.fidelity.com/go/youth-account/overview
