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I am thinking of starting my 18 year old children with a small IRA. They both are in college and have part time jobs earning about $3k per year. They also both have small investment accounts that we started with about $3500 each in them.

I have been doing this for my three daughters since they turned 18 and had jobs. I am retired and getting SSI payments that I do not need and I consider this as a way to give back some of the money that the Govt takes from them to give to me. Kinda like a privatized social security account. The money is invested and has grown nicely.

One of the benefits of this is that as they got jobs they already had had the education of watching savings grow and had the incentive to save their own.

Two of my daughters have jobs that have 401k plans and have saved a lot of money on their own along with Roth IRAs for their spouses.

As for how it's done: I just Had them open a Roth (Fidelity was my choice) and then I fund it and manage the funds for them.

I can tell you that if you have raised them right there will probably not be any problem with them raiding the funds to buy toys.

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