this post was submitted on 17 Jul 2023
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IRA for a child (lemmy.world)
submitted 1 year ago by root@lemmy.world to c/personalfinance@lemmy.ml
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I've heard this is a good way to set your kid up for success and take advantage of compounding. One of the parts I always get caught up on when looking into it, is that your kid needs some form of taxable income, and whatever they contribute, you can match it.

If you have a child that is just a couple years old, how do you accomplish this? I can't just say I pay her $3000 a year for picking a book to read each night..or can I?

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[–] fuzzybee@lemm.ee 5 points 1 year ago

I'm no expert, but I'm gonna say no. Your child would need to have earned income. Allowances or getting paid for household chores isn't going to cut it.