(ABC4) – Do you want your teenager to become more financially literate? Fidelity Investments hopes so, and they’re ready to help.
The company is launching the industry’s first brokerage account with saving, spending, and investing for 13 to 17-year-olds.
Fidelity says it serves as part of its “commitment to educate and support the next generation of investors.”
With the Fidelity Youth Account, you can monitor your teen’s activity in the account, which is intended to help them learn about saving, spending, and investing. There are no subscription fees, no account fees, no minimum balances, and no domestic ATM fees on the debit card.
The account offers teens a chance to learn with saving and spending activities (like managing a debit card), education modules, articles, and resources to “research and plan how to use their next dollar.”
Then, when your teenager turns 18, the Fidelity Youth Account will transition into a standard brokerage account with expanded choices and flexibility.
Fidelity says it surveyed parents and guardians, as well as their teens, about its Youth Account pilot. They found nine of 10 parents and guardians reported sitting with their teen and using the account as a teaching moment. Almost 75% of teens that participated in the pilot reported feeling more confident in achieving financial success.
For more information on the Fidelity Youth Account, visit Fidelity’s site.