If you are looking for a safe and easy way to invest money in your child's future, this article is for you.
I imagine all adults agree that we could all use some more money. And wouldn't we all love to be able to have financial freedom?! With time being on your child's side, you have the ability to help your child get to that place with a custodial Roth IRA.
Teaching your child important life skills, such as saving money will benefit them in the long run. Good habits start young and you are the most influential person in their life. They are going to look to you for help and advice. If you feel overwhelmed by having this conversation with them, you are at the right place. Just use the links in this article I have rounded up to give you a solid foundation for your conversation.
Here's how to get started...
Once your child gets their first job, such as a formal job, or even babysitting, lawn mowing, etc., it's important to help guide them in saving a nice chunk of that money for their future. Remember, good habits start young. If they start saving right away, they will be used to this idea and more likely to keep it up in the future.
If your child is interested in starting a job and doesn't know what's out there for them, here is a list of jobs that are perfect for highschoolers: 30 of the Best Jobs for High Schoolers. As always, please make sure all employers are following the law. It's best to check to make sure the job your child is applying for is age appropriate and legal.
As their guardian, you can act as the custodian of the account until they turn 18 or 21. The age depends on the state in which you live, and at that time it's turned over to your child.
You can contribute to the custodial Roth IRA account as much as the earned income of the child was for the year. The maximum contribution is $7,000. Parents are also allowed to add money to their child's account, however you cannot exceed the amount that your child earned in income for the year, or the annual limit ($7,000), whichever is less. This will make for a wonderful nest egg for your child, and they will be thanking you later when they start making those withdrawals!
Happy Saving!










