How to incentivize your kid to start investing for retirement [Video]

Once you’ve decided that opening a Roth individual retirement account for your child is a great idea, now comes the hard part: convincing the child to save for a far-off retirement instead of spending that hard-earned money. 

I have some ideas for making the case to your child. 

While you’re doing so, it’s also important to consider what counts as “earned income” for a child’s Roth IRA.

Getting your kids to save can set them up for long-term financial success. Here are some ways to do it: 

• Initiate a “parental match” program in which you chip in some additional money, say another $5 for every $10 of earnings they put into the Roth IRA. Offer tangible rewards for every savings goal they meet; charts and apps can help them keep track. Set up a “savings challenge” in which everyone tries to save a specific amount each month; the one …