 TITLE: How to Save Money for Your Kids CONTENT: Ways to Start Saving Money for Your Kids\n----------------------------------------\nOf course, saving money for your kids isn't always as easy as it sounds. The many life adjustments that go into having a baby—disrupted work, medical expenses, diapers—make early parenthood a difficult time to sock away money. Unfortunately, this trend can continue well into childhood and beyond: Raising kids is an expensive proposition. But if you can put even a small amount into savings regularly for your child, you can create a growing nest egg and a savings habit that will serve your family well. When your child is old enough to have their own savings, opening a basic children's savings account is a great way to get them started.\nIn addition to regular savings, consider these ideas for upping your savings game:\n*   **Set up a trust fund.** If you expect to pass along money to your children as an inheritance, establishing a trust and transferring assets such as real estate and investments into it can help keep your assets out of probate when you pass. If you're interested in creating a trust, learn more about the process and consider hiring an attorney to help you set it up.\n*   **Start an investment account.** You can open a custodial account in your child's name under the Uniform Gifts for Minors Act (UGMA) or Uniform Transfers for Minors Act (UTMA). With a custodial account, your child owns the assets but you (or a designated custodian) retain control over the money until your child reaches the age of majority. One caveat: UGMA\/UTMA accounts can make it more difficult for your child to qualify for financial aid when they reach college age, since these funds typically count as student-owned assets. Alternatively, you can contribute to your own taxable investment account with an eye toward building reserves you can use to pay for college or help your kids out later in life.\n*   **Open a Roth IRA in your child's name.** A Roth IRA is an individual retirement account that's funded with after-tax dollars. Though you don't get a tax deduction when you contribute to a Roth, your earnings are tax-free and so are your qualified distributions. There is no minimum eligibility age to open a Roth IRA, but your child must have earned income to make a contribution and the contribution cannot exceed their earned income for the year. Still, if you contribute $1,000 to your teen's Roth IRA this year and it earns an average of 7% annually, it will be worth more than $29,000 when they retire in 50 years. END