Investing for kids is a great way to teach them the basics of investing, establish a solid nest egg, and limit the need for education debt. To start investing in stocks on their own, your kid will need a brokerage account and they must be at least 18 years old to open one. They can also open a custodial brokerage account, which is offered by online brokerage platforms and allows a parent or guardian to manage the account until the child reaches adulthood.
Below, CNBC Select breaks down the best investment accounts for kids, not including savings vehicles like certificates of deposit (CDs) or high-yield savings accounts. Today's best savings accounts are paying record rates, and the highest rates of all are offered to kids and teens. Custodial brokerage accounts are a popular choice for parents looking to help their children start investing early.
If you want to help your child start investing early, you have options. Here's what you need to know to open a brokerage account for a child. There are four primary types of investment accounts for kids, each with their own rules and tax considerations. Kids can also invest in regular brokerage accounts once they reach the age of majority.