If your teenage child or grandchild is gainfully employed, they are able to contribute up to $4,000 a year to a Roth IRA. If a you want to give them a present, contributing to their IRA and it will pay big dividends. If $4,000 is deposited on a teenager between the ages of 16 and 21 every year and the Roth IRA earns a measly 10% per year, at age 65 the amount in the fund will be $2,045,042!

Labels: IRA, money saving tip