Investing for Kids: How to Open an Investment Account

Do you want to teach your kids how to invest but you're not quite sure how to get started? Whether you have very young children or you're looking to help your teenager start saving for the future, opening an investment account for your child is a great way to introduce them to the world of finance. It's never too early to start investing for your kids and teaching them the concept of setting aside money for a goal.

Because minors are not eligible to open their own brokerage accounts, parents and guardians can open a custodial account in a child's name and manage it on their behalf until they reach the age of majority. This allows you to make investment decisions on behalf of your child and help them grow their savings over time. You can open and fund a custodial brokerage account, Roth IRA, ABLE account, special needs trust, or 529 and help your kids select investments that align with their financial goals.

Yes, you can start an investment account for your child. Many stock brokers offer custodial accounts, a type of investment account that a parent or guardian controls on behalf of a minor. These accounts allow you to invest in a variety of assets, including stocks, bonds, mutual funds, and ETFs, to help your child build wealth over time. By opening a custodial account, you can take advantage of the power of compounding interest and help your child secure a brighter financial future.

If you're new to investing, the best investment apps should offer low fees and access to the types of accounts and investment products you need to help your child grow their savings. Whether you're looking to invest in individual stocks, index funds, or other investment vehicles, it's important to choose a platform that aligns with your investment goals and risk tolerance. Explore the best investment accounts designed specifically for kids, understand their benefits, and learn how to open them to start saving for your child's future.

These investment accounts for kids help you save for your little one's nest egg, providing them with a financial cushion as they grow older and prepare for major life expenses like college, a first car, or a down payment on a home. By starting early and consistently contributing to their investment account, you can help your child build wealth over time and set them on the path to financial success. Discover how this CPA set up investment accounts for his toddlers and learn how you can start investing for your child's future, too.