Savings for Children

SAVING ACCOUNTS FOR PARENTS WITH MINOR CHILDREN.

CUSTODIAL ACCOUNT FOR A MINOR This is an account you can open in the name of your child (although as legal custodian, you retain control until your child comes of age). This, by the way, is a great family project to do with your kids. Having their own account teaches them about how money works. They can even invest in companies they know and love, like McDonald's and Disney.

EDUCATION IRA This is a savings account for a child's college education where earnings grow tax-deferred and distributions can be tax-free.

ROTH IRA This account allows taxpayers to save for retirement while allowing the savings to grow tax-deferred and qualified withdrawals are tax-free. This is a great account to save for your children. They are allowed to use if for first home as well as education without having to pay taxes when they withdraw the money.