Nicole Lapin

For reference, the S&P 500 has historically averaged around 7% annually over long periods of time.

So a kid who starts a Roth IRA at 15 and contributes $3,000 a year could have over $1.2 million by retirement age.

And if your kid like mine starts earlier, the runway is even longer.

More time is more money.

I really hate cliches, but this one is real.

One more important note on the financial aid question.

Unlike a custodial brokerage, the balance in a Roth IRA does not factor into federal financial aid formulas.

That means it's not going to count against FAFSA calculations, though if withdrawals are taken, that income could affect the following year's eligibility.

So it's a cleaner vehicle than a custodial brokerage from a financial aid perspective.

Here's the last thing I want to say.

I grew up in a household where money was reactive.

You dealt with it when something became a problem.

Bills were really stressful.

Timing was really tight.

There was no framework for thinking about the future because the present was always so loud.

When I set up these accounts for my daughter, I wasn't just doing financial planning.

I was actively rewriting the script.

I was making a decision that she would grow up in a house where investing is boring and normal and boring.

totally expected, not a privilege, not an emergency or compound interest works for her, not against her.

where she doesn't have to figure out any of this stuff in her 30s from scratch like her mom did.