As parents, we want to set our kids up for success—not just in their childhood, but for their future. One of the best ways to do this is by starting retirement savings as early as possible. Here’s why it matters and how you can get started:
The Power of Early Savings
Starting retirement savings for your kids early is one of the smartest financial decisions you can make. The earlier you start, the more time their money has to grow, and the more they’ll benefit from compound interest. When you contribute to a Roth IRA or similar retirement account for your children, their money grows tax-free.
Imagine starting your child’s retirement savings at age 10. By the time they reach adulthood, they could have a substantial amount saved up—just from the power of compound interest!
Setting Up a Roth IRA for Kids
A Roth IRA is a great option for your kids, as it allows their money to grow tax-free. The key is to start early and contribute regularly. Since kids are likely not earning a significant income yet, contributing the maximum allowable amount each year will have a big impact over time.
In the “Retire the Kids” course, we show you how to set up a Roth IRA for your child and contribute in a way that maximizes their financial growth. By teaching them about saving early, you’re not only investing in their future, but also teaching them important financial lessons that will serve them for a lifetime.
Why Start So Early?
The main reason to start retirement savings early is simple: time. The earlier your kids’ money begins to grow, the more they will have later on. A small contribution made today could turn into a massive nest egg by the time they’re ready to retire—especially when it has decades to grow.
Imagine your kids not only having their own business or career, but also the financial freedom that comes with a fully-funded retirement. This is the future you’re helping create by starting their retirement savings today.
Getting Started
If you’re ready to start contributing to your kids’ retirement savings, the “Retire the Kids” course walks you through every step of the process. From setting up accounts to making contributions and understanding the tax benefits, we’ve got you covered.
