(Image credit: Getty Images)

Most of us know the power of compound interest , often followed by the wish that we had started saving and investing decades earlier. By opening a custodial Roth IRA for a grandchild, you are giving them the one asset money usually can't buy: time. If your grandchild has a summer job or a part-time gig, they hold the 'golden ticket' of earned income needed to open an account. Matching their earnings today does more than teach the value of a dollar — it plants a seed that grows into a tax-free fortune by the time they reach their own retirement.

Roth IRA rules for 2026 allow for a generous contribution of up to $7,500 , provided the amount doesn’t exceed the child’s total earnings.…