Family Resources

This page is designed to help families understand how student earnings from Dookie Chain™ (and other part-time work) can be used to build strong financial habits early. Everything below is written for parents and students, with plain-language explanations and practical tools.

What Counts as “Earned Income” for Minors

To contribute to a custodial IRA, a child must have earned income. This means money received in exchange for work performed.

Common examples that qualify:

  • Wages from a job (W-2 income)
  • Self-employment or contract income (1099)
  • Affiliate commissions earned through approved programs (like Dookie Chain)
  • Babysitting, lawn care, tutoring, or similar work

Does not count as earned income:

  • Allowance or gifts
  • Birthday or holiday money
  • Investment income (interest or dividends)
  • Selling personal items at a loss

Important rule: Contributions to an IRA cannot exceed the child’s earned income for that year.

How Custodial IRAs Work

A custodial IRA is a retirement account owned by a minor but managed by a parent or legal guardian.

Key points:

  • The child is the account owner
  • The parent or guardian is the custodian until adulthood (usually age 18–21, depending on the state)
  • Funds are invested for long-term growth
  • Contributions must come from earned income

Roth vs. Traditional (quick overview):

  • Roth IRA: Contributions are made after tax, but withdrawals in retirement are tax-free
  • Traditional IRA: Contributions may be tax-deductible, but withdrawals are taxed later

Many families choose a Roth IRA for kids because taxes are usually very low (or zero) at young ages.

Compounding — Explained Simply

Compounding means earning returns on both your original money and the money it has already earned.

Simple example:

  • Invest $500 per year for 5 years ($2,500 total)
  • Stop contributing at age 15
  • Leave it invested until adulthood or retirement

Because of compounding, that $2,500 could grow into tens of thousands of dollars over time — without adding another dollar.

Time is more powerful than amount. Starting early matters more than investing a lot.


Savings Goal Worksheets

Use these worksheets to help students understand where their money is going and how to plan ahead.

Income Tracker: How much did I earn this month?
Give / Spend / Save Split: Simple percentage breakdown
IRA Contribution Goal: How much can I invest this year?
Short-Term vs. Long-Term Goals: Fun today vs. freedom later

Download Printable Worksheets

Download Income Tracker Download Give / Spend / Save Download IRA Contribution Goal Download Short vs Long-Term Goals

Simple Calculators

These tools help families visualize long-term impact without complexity.

Investor.gov — Compound Interest Calculator
Fidelity — Start-early vs. start-later comparison

These tools are for understanding only and are not financial advice.

Trusted External Links

IRS — Earned Income & IRAs
Fidelity — Custodial Roth IRAs for Kids
Vanguard — Teaching Kids About Investing


Educational Disclaimer
This page is for educational purposes only and does not constitute tax, legal, or investment advice. Families should consult a qualified professional for guidance specific to their situation.

Helping students build confident financial futures