Bravo to grandparents who are in a secure financial spot!
But that can pose a bit of a problem if they’re lavishing gifts or cash on your teens — stuff your teens don’t need or stuff you’d rather not see them receive. On the flip side, many grandparents have no idea what to give your teens.
Here’s a great solution: the “Granny Match” for working teens. Open up a Roth IRA for your teen using the recipe here.
Get the grandparents to provide the matching portion in step 3. Note: even if your teen can’t contribute a cent, the grandparents can still provide up to the contribution limit as a gift.
P.S. Consult your financial advisor first.