Your Teen Can Put Their Christmas Money to Work!

 As it turns out, your teen can do amazing things with small amounts of money.

It’s probably already burning a hole in their pocket.
They’ve been swamped by ads targeting their age – everywhere.

We parents know the temptation.

So do our kids.

But what if you could help them launch the $100+ that grandma gave them into an amazing, long term, educational AND exciting adventure? 


Small amounts of cash CAN deliver a powerful punch.

Here are 3 pieces of advice we’d give them if they had even just $100 available.  These are not listed in any particular order. 

1) Micro-investing 

Yes, there are companies that will accept small dollar amounts and invest them for your teen. Generally, these companies will ask online questions to determine the best place to invest these small amounts.  You will, of course, want to be at the computer while your teen answers them.

Just think of the learning both you and your teen together can have watching that $100 throughout the months and years ahead.   Bonus? The natural encouragement they will feel to add to that initial investment. 

Warning/Reminder:  there is no guarantee of investment success and that’s actually part of the learning curve here. 

There are new companies entering this industry arena frequently.  Each will have its own criteria, age requirements, quirks and investment strategies.  Here’s a review of many of the more popular micro-investing options out there right now.  It’s a great place to begin your research.  As always, you can online research each company individually and ask questions pertinent to you and your teen and their age.  Hat Tip:    Micro-Investing APP Reviews

2) Roth IRA

We can hear your brain wheels turning now.  An IRA for a teen?  After all, IRA stands for Individual Retirement Account.  Teens and Retirement?   YES.  After your kids leave home, face college, and family/kids arrive, beginning to save for the long-term becomes exponentially more difficult for them.  Getting them into the IRA habit mentality now is an amazing educational gift for your teens. What a wonderful teaching moment your teen will have as you both head to a financial institution and set this up. It’s not difficult.

The behind the scenes tax situation encourages us to save for the future.  As your teen gets older and earns more, they might hit the upper limits/restrictions on how much they can put into an IRA.  BUT, using this savings method is powerful regardless.  Each year the maximum investment allowed will change but building a nest egg now will illustrate the power of savings – and for starting early.  Whether your teen ultimately invests $100 or $1000 after tax income each year until they retire at 65, they will see growth on this money while they were sleeping so to speak.  If we assume a growth of 7% per year and a $1000/yr investment, by the time they retire they will have over $138,000 that can be pulled out tax-free. 

It’s important to note that your teen is only allowed to invest as much as they have actually “earned” during the year.  “Earned” money from a part-time real job, or thru actual self-employment can qualify. Parents, we can’t give them money to invest. They must have “earned” it. 

Want to dig deeper into the Roth IRA details?  Head here: Roth IRA Details

Want to play with the numbers to show your teen how their money grows? Here’s a ROTH IRA calculator by that does just that:  Roth IRA Calculator

 3) Start their own side business

Nothing will spark a learning curve that has a chance of earning them college money, life money and beyond is that first venture into the entrepreneurial world.  Often there is little or no start-up cost involved.  From a party photographer, to yard maintenance, to tutoring, the possibilities are so much greater than you think. 

Want 7 great ideas? Here’s a link to our article that will get your teen’s creative streak started:                                           Teen Money Earning Ideas

Stay tuned JellyGeneration as together we explore how to tackle those last lessons with our teens before they fly the coop.   It doesn’t have to be daunting! 

Did you think that $100 Christmas money from Grandma was just $100 and too little to do much with?  Now you know it isn’t!

Have a great week.   And as we say ...

You CAN Have Success in the Middle of it ALL !

Pam and Holly
JellyGeneration Team 
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Who Is JellyGeneration?

Pam Hardison, MBA, BBA in Finance and Business Education, has created and co-owned a national mail order catalog which at one point was the 21st fastest growing customerbase in the nation.  As a mom of two college-post college daughters, considers it a privilege and to meet other students and parents along the same road.   After teaching high school and college students for years, her commitment to helping them with topics most schools can't cover is the light that drives her.  

Holly Powers, Attorney-At-Law (Jameson & Powers, P.C.) has been actively practicing law since 1985 and is a shareholder with the law firm of Jameson & Powers, P.C.  The firm specializes in transactional law, health care law, and general business law.  Holly has taught students precepts concerning the legal world for over 10 years.  With 4 children, she understands what teens need to know and has a passion to help others faced with teens and aging parents.  


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