How to Open a Kids' Investment Account (Fidelity Custodial Account Explained)

Learn how to open an investing account for your kids with a Fidelity custodial account. No fees, no minimums, and invest with as little as $1.

What's in this video?
This video walks through each step of opening a kids investing account, including signing up, selecting the account, selecting investments, and funding the account. At the end, I talk about possible uses for the money once your kids are of legal age to take over the account.

Though I prefer Vanguard and M1 Finance as overall investing apps, both services change fees and have some limitations on custodial accounts, which I discuss in the video. Fidelity offers a no-fee way to invest, requires no account minimums, and lets you invest in fractional shares of stocks and funds, for as little as $1.

I have no affiliation with Fidelity, and received no compensation to make this video.

* I am not your financial advisor, and the contents of this video are for educational and entertainment purposes only. Please do your own research before making any investing decisions (DYOR). The video is accurate as of the posting date but may not be accurate in the future.

==============================

What is Roadmap Money?
I’m Jacob Wade, the Founder of Roadmap Money! I am a husband, father, and former full-time RVer!

By budgeting and investing wisely, we have:

- Lived on $14 an hour and STILL saved money
- Enabled my wife to be a Stay At Home Mom
- Paid off over $40,000 in debt
- Grown our net worth from negative to over 6 figures
- Quit my six-figure job and travel the country for over two years!

Subscribe to this channel to follow along!

==========

Want to stalk me?

==========

Want to get in touch?

[mikelaba]

I put 35$ a week into my now 4 year old daughter's 529 account for college and have since she was born

And 10$ a week into an UTMA account along with all her birthday proceeds and other cash from family members for her to later use for a down payment for a home or possibly purchase a car when she turns 18.

I plan to give her access to the UTMA account at 13 years old to start trading stocks on her own behalf to teach her how money works.

The idea is that when she turns 18 she feels comfortable and independent I hope at 15 she starts her own job and putting money into these accounts on her own behalf because she will see what a simple 45$ a week will grow into over an 18 year period.

Arming our next generation with the knowledge and understanding of money should be part of your goals as being a parent. My question is what is the best age to start transferring ownership of these accounts to let them start making trades on there own behalf.

[lilyankay]

My parents did very well 🙏🏾 They invested millions for us. Thanks dad and mom( 🕊️) The only problem is they didn’t teach us anything about investing in stocks or bonds 🙈 I’m just now learning about investing so I can invest for my children’s future.

[nacho-man]

God blessed you, thank you for helping others….
I wish all this stuff was teach on all public schools.

[victorhaywood]

I open one with fidelity for my granddaughter when she was 6 months old.

[michellewade]

We're going to be rich! 🤯 Thanks Dad!

[ericcalabrese]

Finally a video that is a good account for more than school lol. Great stuff

[niasteadley]

Great video! We also invest in a UTMA for our daughter with Fidelity & have been since she was 3 months old!

[simonelawson]

Great Video! We had opened up an account 2 months ago but hadn't invested into anything yet because we didn't know what/how so this video helps!

[marybabb]

Thank you benefiting my childrens future.😊

[shoppure]

Today is my daughter’s 2nd birthday I just opened up an account thanks for the info

[vanessabarragan]

super helpful. Thanks for all this info. I want to start my 14 year old nephew in investing now. I've been educated about investing since he was 12.

[joseCalderon]

Absolutely Awesome video! I opened an investment account for both my kids and myself. Fidelity is pretty easy to use as a newb like me. Thanks for the walkthrough. I'm going to teach my kids how to do all this stuff. I started investing in my 20s, but like a dummy, I stopped! I re started again in my late 20s but I have not put enough! I'm 47 now, and finally, I understand the power of compounding interest. Now I'm putting more money into my own retirement, since I got like 15 good solid years to catch up! 😁

[mikelaba]

Also whats great with these accounts is you can set up automatic deposit through your employer with there account and and routing number. Makes it so easy.

[Brazilian]

Thank you so much. I just opened one for my 9 year old,

[saadlamouri]

Great video. Clear and valuable stuff. Thank you!

[IGotBank]

Thank you so much! I have been thinking about this for months. I took the plunge and chose Fidelity for my kids. Thank you for the help.

[ok.........................]

0:18 It's available only in US 😢😢.

[ericmcdowell]

Thanks for sharing!! We need more people to share their knowledge

[izik]

hi Jacob, this is an incredible content you put together helping parents understand how they should invest in their kids! I understand you cant really suggest any specific stocks/etfs/index, but do you have any videos on what type of funds are safer and maybe the allocation etc. I think that's the area where most parents are having hard time to decide. Stocks/ETFs/Funds and allocation. Appreciate your help!

[robin]

Jacob, can you please clarify few critical points.
1. Difference between investing the same amount in parents brokerage account vs. child's UTMA....Why choose one over the other.
2. Upon withdrawal, what are the tax stipulations? My understanding is brokerage taxed at capitals gains rate vs. UMTA after child limits taxed at parents's income tax rates.

Thanks