You can give your child a head start in life by opening an individual retirement account (IRA) for them. Allowing it to build interest for decades enables it to grow much more than if you wait until the child is older. Custodial Roth IRAs have some rules that must be followed, but it has many benefits that will make it worthwhile.
Custodial Roth IRAs, like regular Roth IRAs, are designed to save money for retirement. The interest grows tax-free, and all legitimate withdrawals are also tax-free. They do not provide any tax deductions because the contributions use after-tax money.