Open a Roth IRA at 16. Let it grow until 65.
A Roth IRA is the single biggest head start a teen can give their future self. Money you put in grows for decades — and when you take it out in retirement, it's completely tax-free.
Saving $50/month and never raising it, at an illustrative 8% average annual return. Most of that total is growth — not money you put in. Example only, not a guarantee.
It's a retirement account with a superpower: tax-free growth.
A Roth IRA is a personal retirement account you open yourself (with a parent's help while you're a minor). You put in money you've already paid tax on — like earnings from a summer job — and from then on, it grows completely tax-free.
When you retire and take the money out, you owe nothing in taxes on all those decades of growth. That's the opposite of a regular savings account, where you'd owe tax on interest along the way.
The catch is small but important: to contribute, you need earned income (money from a job), and you can't put in more than you earned that year, up to the annual limit. That's it — a babysitting, lifeguarding, or part-time retail paycheck all count.
You need a job, not a lot of money
Any earned income qualifies — even $500 from babysitting lets you contribute up to $500 that year.
Time is the real ingredient
Starting at 16 instead of 26 gives your money ten extra years to compound. Those early years matter most.
Your contributions stay reachable
You can withdraw the money you put in (not the growth) without penalty if you ever truly need it.
A custodial Roth bridges the gap
Under 18, a parent opens a "custodial" Roth IRA with you. It becomes fully yours when you reach adulthood.
See what your Roth IRA could become.
Pick a starting age and a monthly amount. Watch how many tax-free dollars you could be sitting on at 65 — and how little of it came out of your own pocket.
Want compounding frequency, a year-by-year table, and more controls? Open the full calculator →
Three pictures that explain everything.
Building wealth isn't complicated or flashy. These three simple images capture how a teen with a Roth IRA turns small, steady effort into something big.
The snowball effect
A small snowball rolling downhill picks up more snow with every turn — and grows fastest near the bottom. Your money does the same: growth earns its own growth, so the longer it rolls, the bigger it gets.
Planting seeds
Every dollar you invest is a seed. You won't see a tree the next morning — but watered with time and patience, those seeds grow into something that keeps producing on its own, year after year.
Building brick by brick
No one lays an entire house in a day. Each dollar and each contribution is a single brick. Stack them steadily — month after month — and one day you look up at a finished house you built yourself.
Opening one is a four-step afternoon.
It's less work than setting up a new game account. Here's the whole process.
Earn some income
A job of any size works — babysitting, a summer gig, or part-time hours. Keep a simple record of what you earned.
Pick a provider
Choose a brokerage that offers a custodial Roth IRA for minors. See the teen-friendly options below.
Open it with a parent
Until you're 18, a parent or guardian co-signs as custodian. It takes about 15 minutes online.
Invest & automate
Add a small monthly amount, put it in a low-cost index fund, and let the snowball start rolling.
Teen-friendly places to start a Roth IRA.
These companies offer custodial Roth IRAs or teen investing accounts with low (or no) minimums and beginner-friendly apps. Compare a couple before you commit.
Fidelity
Roth IRA for KidsA purpose-built custodial Roth IRA for minors with no account fees and no minimum to open.
- $0 to open, no monthly fees
- Fractional shares from $1
- Strong index-fund lineup
Charles Schwab
Custodial Roth IRAA long-established brokerage with a custodial Roth IRA, deep research tools, and 24/7 support.
- No account minimum
- $0 stock & ETF trades
- Great for learning the ropes
Vanguard
Custodial Roth IRAFamous for ultra-low-cost index funds — ideal if you want to set it and forget it for decades.
- Industry-low expense ratios
- Built for long-term investors
- Target-date funds available
Fidelity Youth
Teen investing app (13–17)A teen-owned brokerage app to practice investing now. Pair it with a Roth IRA for Kids for retirement.
- Designed for ages 13–17
- No subscription or account fees
- Built-in financial lessons
Greenlight
Family money + investing appA debit card and investing app where parents and teens manage money together and learn by doing.
- Parent-approved investing
- Chores, saving & goals built in
- Great first money habits
Acorns
Round-ups + Later (IRA)Automatically invests spare change and offers an IRA option — an easy on-ramp for hands-off beginners.
- Automatic round-up investing
- "Later" retirement accounts
- Simple, fully automated app