Since it’s summer and many teenagers are finding summer jobs, here is a plug for Mom and Dad (or grandparents) to put money aside for the working teenager into a Roth IRA for them. As long as the teenager is gainfully employed, she/he can contribute up to $4,000 into a Roth IRA. Of course, the value of the Roth IRA is that it accumulates tax-free.
If the working teenager puts $4,000 a year into a Roth IRA between the ages of 16 and 21 (six years total) AND THEN DOES NOT MAKE ANY OTHER CONTRIBUTIONS, the value of the account will be worth over $1,000,000 when she/he is age 65 (assumes 8.5% earnings).
If you worry about the future for your teenager(s), start a Roth IRA for them. It will make you sleep better at night. I guarantee it.