How to Open a Custodial Roth IRA w/ Vanguard (aka Roth IRA for Kids)

Want to hire your child legally and fund a Roth IRA the right way? Check out Kids Money Academy (affiliate link): https://www.marriagekidsandmoney.com/kidsmoneyacademy The best time to start investing for retirement is when you first earn income. But what if that income belongs to your child? In this video, I walk you through how to open a custodial Roth IRA with Vanguard, step by step. We’ll cover why starting early is so powerful, how compound interest works in your child’s favor, and exactly how to open and fund the account properly. You’ll also learn: • The rules around earned income • Roth IRA eligibility requirements • Why Vanguard is a strong low cost option for beginners • How to invest once the account is open Starting early can turn small amounts of earned income into significant long term wealth. This is one of the most powerful tools for building generational wealth and teaching financial literacy. Prefer to read instead? Check out the full written guide here: https://marriagekidsandmoney.com/how-to-open-a-custodial-roth-ira-with-vanguard/ Carpe diem. ⏱️ Chapters 00:00 Why Kids Should Open a Roth IRA 01:00 The Power of Compound Interest 01:45 Two Ways to Open a Custodial Roth IRA with Vanguard 02:19 Step 1: Log Into Vanguard 02:35 Step 2: Navigate to Transact 02:55 Step 3: Open an Investment Account 03:32 Step 4: Choose a Brokerage Roth IRA for a Minor 04:10 Step 5: Fund the Account (Earned Income Rules) 04:39 Roth IRA Eligibility Requirements 05:15 Why Paper Trails Matter 05:40 Hiring Your Child Legally 06:00 Is Vanguard Beginner Friendly? 06:51 Age Requirements for Roth IRAs 07:20 Building Generational Wealth 🔗 Resources Mentioned Kids Money Academy https://www.marriagekidsandmoney.com/kidsmoneyacademy Written Article Version https://marriagekidsandmoney.com/how-to-open-a-custodial-roth-ira-with-vanguard/ Vanguard https://www.vanguard.com _____ MARRIAGE KIDS AND MONEY: This award-winning YouTube channel is dedicated to helping families build wealth and thrive. Each week, Andy Hill shares actionable advice and tips for family financial independence. Also, he interviews personal finance experts, families who've achieved financial independence and work optional parents to inspire you to do the same. BIO - ANDY HILL: Andy Hill, AFC® is the award-winning family finance coach behind Marriage Kids and Money - a platform dedicated to helping young families build wealth and happiness. Andy's advice and personal finance experience have been featured in major media outlets like CNBC, Forbes, MarketWatch, Kiplinger’s Personal Finance and NBC News. With millions of downloads and views, Andy’s message of family financial empowerment has resonated with listeners, readers and viewers across the world. When he's not "talking money", Andy enjoys being a Soccer Dad, singing karaoke with his wife and relaxing in his hammock. ✅ CONNECT WITH US Order My Book "Own Your Time": https://marriagekidsandmoney.com/book Follow On Instagram: http://instagram.com/marriagekidsandmoney Read our Blog: https://marriagekidsandmoney.com Listen to our Podcast: https://marriagekidsandmoney.com/podcast-archive/ Subscribe to my YouTube channel today to strengthen your family tree and live financially free! HOW WE MAKE MONEY & DISCLAIMER This show may contain affiliate links or links from our advertisers where we earn a commission, direct payment or products. Opinions are the creators alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser. Information shared on this channel is for entertainment purposes only and should not be considered as professional advice. Marriage Kids and Money (www.marriagekidsandmoney.com) is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. CREDITS Research & Writing: Andy Hill, AFC® Video Editing: EditVideo.IO Thumbnail: Ardi, The Thumbnail Wiz