It would be good if a child starts saving during his childhood as it would make his life easier for the future. A person who starts saving as a child is likely to develop savings habit and would save in a consistent manner throughout his life. At the federal level the eligibility requirement for minors and adults are similar and the child must be having eligible compensation so that individual retirement account contribution could be made on the child’s behalf.



A child who makes money from modeling, newspaper route or as an office assistant fulfills the eligible compensation requirement. The problem would arise in case the child is working for his family members as it would become difficult to prove that the income was derived from non traditional employment.



In case a child starts saving early it would not only inculcate good saving habits in the child but would also enable the child to reach his established savings at an early stage of his life and his life would become easier as later he or she would have to contribute less to the every savings plan.