When I was young, one of my favorite things to do in November was to go through the thick Sears and JCPenney catalogs (for those of you as old as me, you remember getting catalogs sent to your house every year) and creating a wish list of all the items I wanted to get for Christmas.
I gave this practice up a long time ago, but my cousin who is now 30 still types out a detailed wish list for her parents every year.
The modern wish list can now be found in the form of Toys ‘R Us’ new Wish List which is touted as “the ultimate toy registry—Perfect for Holidays and Birthdays.”
I admit I was originally appalled by the idea of a gift registry for children.
[read more on Child Gift Registries...]
It is a little known fact that children who earn an income can open a Roth IRA.
Parents who have this knowledge can help their children learn about the power of compound interest and its near magical effect on retirement savings.
What Are the Requirements for Opening a Roth IRA for a Child?
A child can open a Roth IRA if they have verifiable income. Their income can be verified through W-2 records, or if they were a freelancer, so to speak, mowing lawns or babysitting, they must claim their income on a tax return.
In addition, some brokers also request that a legal guardian be on the Roth IRA with the child until the child is of age. However, not all brokers require this.
How Much Can Your Child Contribute
[read more on opening a Roth IRA for your Child...]
