Free calculator · Updated March 2026
Child Savings Calculator
See the power of starting early. Enter a monthly amount and watch how compound interest turns small contributions into a life-changing amount by the time your child needs it.
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How much should you save for your child each month?
There's no single right answer — but even $50–$100 per month invested from birth can grow to $30,000–$60,000 by age 18, depending on the account type and returns. The biggest factor isn't the amount — it's starting early and letting compound interest do the work.
Best savings accounts for kids in 2026
| Account type | Best for | Expected return | Tax advantage |
|---|---|---|---|
| High-yield savings account | Emergency fund, short-term | 4–5% (current rates) | None |
| 529 plan | College savings | 5–8% (invested) | Tax-free for education |
| Custodial brokerage (UGMA) | General wealth building | 6–9% (invested) | Kiddie tax rules apply |
| Roth IRA (if child has income) | Long-term retirement | 6–9% (invested) | Tax-free growth forever |
Frequently asked questions
When should you start saving for your child?
The best time is at birth — or even before, as a "baby fund" during pregnancy. Every year earlier you start means more compound growth. Saving $100/month from birth yields about $40,000 by age 18 at 6% returns. Starting at age 5 with the same amount yields about $27,000.
What's the best account to open for a child?
For college savings, a 529 plan is usually best due to tax-free growth and withdrawals. For general wealth building, a custodial brokerage account (UGMA/UTMA) gives flexibility. For an emergency fund or short-term goal, a high-yield savings account is ideal. Many parents use a combination.
Can a child have a Roth IRA?
Yes — a child can contribute to a Roth IRA if they have earned income (from a job, babysitting, lawn care, etc.). They can contribute up to their earned income, up to the annual limit ($7,000 in 2026). A parent or guardian manages the account until the child turns 18. Starting a Roth IRA for a teenager can be one of the most powerful financial gifts possible.
Sources: IRS Publication 590-A, College Board, FDIC. FamilyNest Finance is for informational purposes only and does not constitute financial advice.