Money Smart Kids
Web Sites for Kids
Kudos to these sites for making the topic of finances attractive and fun for children.
By Janet Bodnar, Editor, Kiplinger's Personal Finance
December 21, 2005
Can you suggest some financial Web sites for kids?
Designing a financial Web site that is attractive for children can be a real challenge. When most kids go online, they prefer to play games, download music or chat with their friends. And it's my observation that financial sites can sometimes be text-heavy and uninviting.
Having said that, I think the following Web sites are noteworthy for age-appropriate content and lively presentation.
Wise Pockets. Designed for children in grades three to six, this Web site shows parents and teachers how to use popular children's books to teach kids about money.
Sense & Dollars. A user-friendly blend of text and interactive games for middle- and high-school students.
Moneyopolis. Kids use math skills to solve real-life financial problems.
Consumer Jungle. For older teens, this Web site is loaded with detailed information on topics such as buying a car, deciphering credit-card agreements and renting an apartment.
The Motley Fool for teens. A teen-oriented section on the Motley Fool investing site.
I'd love to hear about other Web sites that readers would recommend.
Opening a Roth IRA
My 17-year-old has $866 in a bank account and $3,217 in a small investment account. Would I be smart to close these accounts and place the money in a Roth IRA?
That could be a smart move under the right circumstances.
In order for your son to open a Roth IRA, he needs to have earned income from a job, including part-time employment or summer work. In 2005 and 2006, he can contribute up to $4,000 a year or the amount of his annual earnings, whichever is less.
Let's say your son earned $2,500 last summer. In that case, he could contribute $2,500 to a Roth for 2005 (and he has until April 2006 to do it). He (or you, on his behalf) could use the money in his accounts to fund the Roth. The IRS doesn't care where the money comes from, as long as your son is eligible to make a contribution.
As a bonus, your son wouldn't be taxed on earnings in the Roth, and would be able to withdraw the money tax-free in retirement.
