The article discusses a parent's initiative to set their kids on a solid financial path by opening Roth IRAs when they started working around ages 15 or 16. The parents made a deal where the children contribute 25% of their income, and in return, the parents match their contributions 3-to-1. This approach aims to create saving habits and emphasize the importance of early investments, helping children understand the long-term benefits of compound interest.
We made all our kids a deal when they got their first jobs: they'd contribute 25% of their earned income to a Roth IRA, and we'd match it 3-to-1.
It's not just about setting them up for retirement - it's about teaching financial habits that will serve them for life.
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