Sign-up promotion?<\/div><\/td>
One month free trial<\/div><\/td><\/tr>
Pros:<\/div><\/td>
Parental monitoring, educational tools, family money management, up to 5% cash back to savings, digital wallet access, FDIC-insured<\/div><\/td><\/tr>
Cons:<\/div><\/td>
$5000 monthly load cap, monthly fee<\/div><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
3. Fidelity Youth Account<\/strong><\/h2>\n\n\n\nTeens don\u2019t have to wait to start investing in stocks, ETFs, and mutual funds. The Fidelity Youth Account is a teen-owned brokerage account that comes with a debit card. This is unlike a custodial account (UTMA\/UGMA) where the custodian, usually the parent, makes investment decisions on the minor\u2019s behalf.<\/p>\n\n\n\n
Teens ages 13-17 can invest in the stock market and learn good money habits at the same time. <\/p>\n\n\n
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Unlike other youth accounts, there are no subscription fees. In addition, there are no account fees or trading commissions. The debit card can be used for any purpose with parental oversight. <\/p>\n\n\n\n
Teens can learn about financial literacy through the Youth Learning Center on the app, then apply their skills in the real-world stock market. The Fidelity Youth Account is a great option for kids looking to get a jumpstart in the investing world. When the teen turns 18, the account converts into a standard Fidelity brokerage account. <\/p>\n\n\n\nRating:<\/div><\/td>
4\/5<\/div><\/td><\/tr>
Best for:<\/div><\/td>
Parents looking to get their teens started with money management and investing on their own<\/div><\/td><\/tr>
Account minimum:<\/div><\/td>
No investment account minimum \u2013 invest as little as $1 with fractional shares<\/div><\/td><\/tr>
Fees:<\/div><\/td>
No monthly account fee or trading commissions<\/div><\/td><\/tr>
Sign-up promotion?<\/div><\/td>
$50 reward after downloading Fidelity App and activating the Youth Account<\/div><\/td><\/tr>
Pros:<\/div><\/td>
No monthly fee, Youth Learning Center, parental controls, investment focused<\/div><\/td><\/tr>
Cons:<\/div><\/td>
Parent must be Fidelity customer, no chore\/allowance feature<\/div><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
4. Fidelity Roth IRA for Kids <\/strong><\/h2>\n\n\n\nStarting a Roth IRA for your child is considered advanced<\/em> in terms of the child savings spectrum. Many options for kids include prepaid debit cards that instill good spending habits, financial discipline, and the value of a dollar by getting paid for chores and other tasks. <\/p>\n\n\n\nShifting from saving to investing is the next step of the journey. This can help kids understand not only the day-to-day money management habits but simultaneously how to save for retirement. The Fidelity Roth IRA is a type of investment account that is designed for long-term retirement savings. <\/p>\n\n\n\n
The parent will maintain control of the account as long as the child is a minor (age depends on state). Here are the eligibility requirements:<\/p>\n\n\n\n
\n18 years of age or younger<\/strong><\/li>\n\n\n\nMust have employment compensation<\/strong> – This could be income from a job or from employment tasks like mowing lawns or shoveling snow.<\/li>\n<\/ul>\n\n\n\nKids get the opportunity to invest in stocks, bonds, ETFs, and mutual funds. Roth IRA accounts are most appealing for their tax advantages. Contributions AND earnings can grow tax-free. This means at retirement they can take withdrawals without being taxed on the back end. In terms of long-term financial impact, overall a Roth IRA is the best account for kids. <\/p>\n\n\n
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Rating:<\/div><\/td>
4.5\/5<\/div><\/td><\/tr>
Best for:<\/div><\/td>
Parents who want to get a head start on tax advantage retirement saving for their child<\/div><\/td><\/tr>
Account minimum:<\/div><\/td>
None<\/div><\/td><\/tr>
Fees:<\/div><\/td>
No monthly fees or trading commissions<\/div><\/td><\/tr>
Sign-up promotion?<\/div><\/td>
None<\/div><\/td><\/tr>
Pros:<\/div><\/td>
Funds can be used for college and first home, qualified withdrawals are 100% tax-free, Youth Learning Center<\/div><\/td><\/tr>
Cons:<\/div><\/td>
Annual contribution limit, no chore\/allowance feature<\/div><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
5. Chase First <\/strong><\/h2>\n\n\n\nChase First is a debit card for kids and teens, managed by parents. As long as parents are existing Chase customers, there are no monthly service fees.<\/p>\n\n\n\n
Chase First focuses on simple money management for parents and children through the lenses of spending, saving, and earning. The account functions like a checking account with buckets<\/em> to save, spend and earn. <\/p>\n\n\n\nParents can choose where their kids shop, assign chores and track savings goals. Kids can learn how to manage their money in the real world and experience the freedom of having their own debit card. <\/p>\n\n\n
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Chase First is basic in its features compared to other child savings accounts. The account focus is helping kids learn the foundation first with parental oversight. Kids can \u2018graduate\u2019 to the Chase High School Checking account and add features like Zelle, direct deposit and check writing. <\/p>\n\n\n\n
Outside of adding an educational curriculum component, the Chase First account is a great option for parents looking for a free account to teach their child the basics of money management. <\/p>\n\n\n\nRating:<\/div><\/td>
4\/5<\/div><\/td><\/tr>
Best for:<\/div><\/td>
Teaching a child how to use a debit card and learn smart money habits<\/div><\/td><\/tr>
Account minimum:<\/div><\/td>
None<\/div><\/td><\/tr>
Fees:<\/div><\/td>
No monthly service fee<\/div><\/td><\/tr>