If your son/daughter or grandkid (emphasis on grandkid, parents have no money either) that was lucky enough to find a job, consider making a payin to a Roth IRA on their behalf. Since they probably spent their money.
You can contribute up to $5,000, but not more than the child’s earnings. But what you put in counts toward the $13,000 annual gift tax exclusion. The payin can help provide a start to a retirement plan and assist in their education of such. A $5,000 contribution to a 16-year-old’s Roth that earns 8% each year will grow to $217,000 at age 65 and $319,000 at age 70.
Also, if the child continues to work for a few summers and contributions are made each year, the future balance in the account will be significantly larger.
Roth IRAs have some important tax advantages. Beyond the appeal of tax-free withdrawals after 59½, in the short term, the child can pull out payins free of tax. That can come in handy to help when purchasing a first home.