IRA for Children - massive compunding?

Hello,

I have just read the book, Wealthy Child: Financial Success for the Children in Your Life from Amazon.com

The book had a lot of great and, I thought, smart ideas but I was curious about one aspect. Has anyone setup a Roth IRA for their child (someone under 18 years of age)?

Sorry for posting this twice as I put in the wrong palce the first time around.

Thank you.

Don't you need earned income to start a Roth? I imagine only the 16 year old with a part-time fast food job or similar scenario would qualify and i doubt they make much to put into the Roth.....

Pochax, you're right, you have to have earned income to contribute to a Roth IRA, but sometimes, depending upon the circumstances (like if there is a family business) a child can have an earned income and contribute to a Roth IRA. It has to be legitimate work to earn the money, but it can be done...

Kids can also earn money with a paper route, babysitting, lawn-mowing, etc. before they turn 16. From what I understand, you just need to keep accurate records.
When my kids get old enough, I plan to contribute to their Roths for them. ie They work and earn money for clothes, cell phone, whatever, and I contribute 100% of their income to a Roth in their name.
I'm also trying to come up with some kind of "matching" incentive to encourage them to save. Like if they put their money into a savings account rather than blow it every week, I'll contribute to that, too, to boost their savings for bigger goals. I haven't worked out details of how to approach that yet.

I've got plenty of time. My oldest is just 2. I'm already on the lookout for ways for her to earn some money - primarily so I can start a Roth for her, but I think it will be a while before she can have any legit earnings.


P.S. To TaxBoy, yes, I have heard of this. A friend of mine in had his parents set up an IRA for him when he turned 16, and contributed $2k per year (the limit at the time). A couple years out of college, he had a balance of about $30k; I only had about $8k in mine, and was jealous.