18 & Clueless About Investing? Roth IRA & S&P 500 Explained for Beginners!
Turning 18 often brings a lot of questions about "adulting," and investing is a big one. This topic is worth talking about because it helps young people understand a key financial step.
How: A simple, easy-to-understand explanation of Roth IRAs (like what they are and their tax benefits) and S&P 500 index funds (how they offer diversification and long-term growth). Emphasize the power of starting early with small, consistent contributions. Keep it straightforward and actionable.
Target Audience: Young adults (18-25) who are just starting to dip their toes into investing and personal finance.
Origin Reddit Post
r/personalfinance
Just turned 18. What’s the next step ?
Posted by u/Nice-Safe-2414•05/31/2025
As the title says recently turned 18 and I’ve heard from all around that investing is important and the biggest thing I’ve heard is Roth IRA. I went ahead opened a Robinhood account and saw t
Top Comments
u/Icy_Equipment_4906
Personall, unless you have an employer 401k match I would prioritize saving for school to avoid debt if you are doing college.
Otherwise, consistently contributing to an snp 500 or total ma
u/thomas533
An IRA is just an retirement investment account, not an investment in and of itself. But with it you can buy things like stocks as investments. If investing is new to you, start with a [three
u/pardothemonk
For now, try to save where you can, but just in an interest saving account. Going to college- do your best to stay debt free. And get a degree that actually provides training. Most degrees ar
u/Lucky_Depth_3695
If you have the means to do so, then yes put as much as you can in a Roth up to $540/month. Use it to invest in ETFs and hold long term. Doing that at 18 is INSANELY powerful but not everyone
u/deersindal
These two pages are worth your time:
https://www.reddit.com/r/personalfinance/wiki/teachme
https://www.reddit.com/r/personalfinance/wiki/commontopics
u/theplacesyougo
You’ve put money in but doesn’t sound like you’re invested in anything. Look into index funds that track the S&P 500.
Next avoid debt at all costs.
If you do have debt, consider the Dav