If your minor child has earned income from babysitting, tutoring, or social media work, they are eligible for a Roth IRA. The child's earned income will be taxed at the child's rate above their applicable standard deduction, equal to their earned income plus $450 (or $1,300, whichever is greater), up to a maximum of $14,600 (in 2024). This is a very low federal tax rate. The limit on contributions to a Roth IRA is the lesser of their earned income or $ 7,000 (2025).

The Roth IRA can grow tax-free for many decades and be withdrawn tax-free. An excellent deal.