Child Wealth Calculator Simple investing for parents
Teen Money Calculator

First Job Investment Calculator

šŸ’¼ Imagine your child earns money from a summer job and decides to invest it in a Roth IRA instead of spending it.

One summer of work could potentially grow for decades.

Enter a summer earnings amount below and see how that same money could potentially grow when invested at age 16, 18, 25, or 30.

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šŸ’° Top 5 Financial Moves Teens Can Make Before Turning 18 ā†’

This calculator is for educational purposes only and should not be considered financial, tax, or investment advice. Investing involves risk, including possible loss of principal. Roth IRA eligibility and contribution limits depend on earned income and IRS rules. Investment returns are not guaranteed.

ā† View all calculators Read parent investing guides ā†’

Why a First Job Can Be a Powerful Teaching Moment

A teenagerā€™s first paycheck creates a chance to connect earning, spending, saving, taxes, and investing in one real experience. This calculator shows how an amount invested from early job earnings could grow over a long time horizon under the return assumption entered.

Roth IRA eligibility matters

A Roth IRA contribution generally requires eligible earned income, and contribution limits and tax rules can change. The calculator is not an eligibility checker. If you are considering a custodial Roth IRA for a minor, verify the childā€™s earned income, current contribution limits, documentation requirements, and the custodianā€™s account rules before contributing.

A practical way to involve a teen

Start with the teenā€™s actual earnings and decide together what portion, if any, is meant for long-term investing. They may also need money for transportation, school, short-term savings, or spending. The goal of the exercise is not to lock away every paycheck; it is to show how giving a small portion of early earnings decades to compound can create a very different outcome from spending every dollar today.

What the projection leaves out

The result assumes a constant annual return and does not account for taxes, fees, changing contribution limits, or future withdrawals. Actual market performance will vary.

Turn a first paycheck into a long-term lesson

This calculator lets a teen see what could happen if part of early earned income were invested for a long period. It is not a recommendation to invest every paycheck; teens may also need cash for school, transportation, emergencies and near-term goals.

Try this comparison

Try 5%, 10% and 20% of the same paycheck. The exercise teaches that a savings rate is a decision that can be adjusted rather than an all-or-nothing commitment.

Read the result carefully

Projected values are educational estimates. Markets do not produce the same return every year, taxes and account rules can matter, and future purchasing power may differ from today. Use the result to ask better planning questions rather than treating it as a guaranteed outcome.

How our calculator projections work ā†’

Use the result as a scenario, not a forecast

Calculator results are educational illustrations based on the numbers you enter. Real outcomes can differ because returns vary and taxes, fees, inflation and account rules may apply. Try more than one return assumption and compare the result rather than relying on a single projection.

Read our calculator methodology and assumptions ā†’