it's like a roth ira.ax law yos cut only contribute -- laws you can only contribute $14,000 if you're single, $28,000 if you're married and file jointly. still, a exwhat of a lot of money. and by the way, your child's grandparents can contribute to the same plan too. and they're in the money, a grandparent can start a 529 with your kid as a beneficiary. for financial aid reasons it's better if a parent does it. let's say for some reason you and your parents are sitting on a huge sum of money. one of the really great things about a 529 plan is that you can front load five years worth of contributions without inkurring the federal gift tax. as long as you don't write any checks to the plan's beneficiary. let's say a parent or a grandparent can invest right from the start or if you're married you can contribute. you won't be able to contribute anything without getting hit with the gift tax. honestly, once you drop that kind of money into the 529 you won't need to make many more contributions. the key, you wan

you can open a roth ira account to install basic investment and retirement savings concepts as an incentivee parents actually match their kid contributions. >> that's a great idea because i imagine that check goes in one ear and out the next at 18. [ laughter ] >> what else should they keep in mind, jill? >> reporter: if your kids are lucky enough to have a job this summer, remember, a lot of seasonal workers and contractors do not withhold taxes. so that means the kids have to put aside 15% of their earnings to cover that future tax bill. and if your teen is waiting tables and receiving cash tips, in addition to a base pay, those tips have to be included as taxable income. for more on how to talk to you kids about money, go to moneyasyougrow.com. it explains the concepts and when to explain it to them at what ages. >> thank you, jill schlesinger. >>> coming up, general motors issues its biggest recall yet. the details behind the problem of more than 3 million cars that could be a major safety concern. >> and hold the salt, please. hear all about the new plan that would force food companies