💸 What is a Roth IRA (And Why Should Teens Care?)

📊 What Is a Roth IRA?

A Roth IRA (Individual Retirement Account) is a special type of account where you can save and invest money for retirement—and it grows tax-free. That means the money you invest in stocks or ETFs can grow over the years, and when you finally withdraw it in retirement, you don’t pay taxes on it.

Example: If you invest $1,000 as a teen and it grows to $10,000 by the time you retire, you keep all $10,000. No need for paying tax.

🤔Why Teens Should Start Now

Even if you're still in high school, you can open a Roth IRA if you have earned income—meaning babysitting, freelancing, tutoring, or a part-time job.

Here’s why it’s powerful:

• More Time = More Growth, Compound interest means small amounts today grow into big amounts tomorrow.

• Tax-Free Future, You get to keep more of what you earn.

• More Freedom, Extra savings means more freedom to travel, start a business, or retire early.

💭 How to open a Roth IRA?

1. Earn income (it must be legal and reported).

2. Pick a platform like: Fidelity, Vanguard, or Schwab. Some let teens open a custodial Roth IRA with a parent.

3. Start small. Even $30 or $100 can make a big difference.

✨Final Words from me

Roth IRAs may sound like adult stuff, but they’re really just a smart way to grow your future money. You don’t have to be rich or a finance expert to start—just consistent and curious. Start now, and your future self will be very grateful.

– Cristabelle Chang Founder, Econaeva