Saving for your kids? Decide which account best suits your goals

The type of account you choose for a child will depend on your goals. If you want to give a gift of money to a minor—and at the same time introduce the world of investing—a custodial account can be a good choice. A custodial Roth or traditional IRA is another option if the minor has earned income.

But if you want the money to help pay for the child's college education, one of the best choice will likely be a 529 college savings plan or an Education Savings Account (ESA). And if your primary objective is to transfer a large amount of wealth to a child, the best solution is probably a trust.

Use this chart to consider all of your options: