Foster son suddenly has $16,000
I am a foster parent to an older teen who has received his first payment from a settlement for something that happened many years ago. It’s about $16,000 and he will get a similar amount for the next couple of years.
He wants to save/invest wisely. He’s also already going a little overboard with spending in the excitement of having money to spend (not totally crazy yet, but he’s spent a couple hundred just on the first day). He’s asked for help not to waste this chance.
My co-parents and I don’t really know anything about money or investing, except that this money could help him out in life or could get pissed away. He is a very shy kid and doesn’t want to talk to anyone but us- he wants us to find out some good options and present them so he can choose how to proceed.
Can anyone help point me in the right direction(s)? One of his aunts, who is relatively well off, mentioned something called a Roth IRA- I don’t even know what that is. He refuses to speak directly with her, or with anyone at his credit union, or generally speak with anyone else but us. Meanwhile, we’re just some idiots who happen to have formed a strong connection to him but have no actual knowledge. Help?!