If your child worked part-time this year, he or she might benefit from a Roth IRA. There is no age limit on contributions as long as the child has earned income (even if you actually provide the cash in a gift equal to the same amount).
Although tax-free distributions from the Roth generally are not available until the child turns age 59½—a long time away—the contributions can grow into a sizeable nest egg. Also, tax-free withdrawals may be allowed due to disability or for a first-time home purchase (up to $10,000).
Finally, your child will learn valuable lessons about saving for retirement.