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It might sound
early, but if a child has earned income,

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They can contribute to a Roth Individual
Retirement Account or Roth

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IRA. It can come from a W-2 job
or self-employment

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income like babysitting or yard work,
as long as it's reported to the IRS.

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There are no age limits.

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Even very young children can qualify.
In 2026, contributions

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are limited to the lesser of $7,500,
or the child's total earned income.

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So, if a child earns $1,000, that's

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the maximum that can go into the account
that year.

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And here's the big benefit,

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anyone can contribute parents,
grandparents or even family friends,

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as long as the total stays
within that limit.

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Money in a Roth IRA potentially grows
tax-free,

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and decades of compounding
can make a huge difference.

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And it's not just for retirement.

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Contributions can be withdrawn
any time without taxes or penalties.

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Earnings may also be used
for qualified education expenses

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or a first-time home
purchase under IRS rules.

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Eventually,
when a child becomes a legal adult,

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the account becomes theirs, offering
not just money

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but a powerful lesson in saving,
investing and long-term planning.