Fidelity Launches Saving, Investing Account for Teenagers

NEW YORK — Looking to draw in the next generation of investors, Fidelity Investments is launching a new type of account for teenagers to save, spend and invest their money.

The account is for 13- to 17-year-olds, and it will allow them to deposit cash, have a debit card and trade stocks and funds. The teens can make their own trades through a simplified experience on Fidelity's mobile app, with zero account fees or minimum balances, though the youth account requires a parent or guardian to have their own Fidelity account as well.

It's the latest step in a broad push by the industry to draw more first-time investors into the market. Over the years, brokerages have slashed trading commissions to zero and offered easy-to-use apps in hopes of boosting the percentage of U.S. households that are in the stock market, which has climbed back above half. Holding stocks is one of the best ways to build wealth over the long term, but with that also comes risk. 

Younger investors in their 20s and 30s have been taking the market by storm, with trading volumes rising across brokerages, but they sometimes get criticism for trading too quickly and rashly. Earlier this year, a loosely organized band of investors sent GameStop's stock soaring suddenly, while communicating with each other on Reddit and other social media, only for most of the gains to evaporate before yo-yoing in the highest-profile example. 

Fidelity's youth account will not put limits on how much or how often a teen can trade, though it won't let them buy or sell cryptocurrencies, stock options or ETFs that use borrowed money to supercharge gains and losses. Fidelity's hope is that parents and guardians will use the new youth account as a way to have conversations with their kids about how to safely invest for the long term. 

"There is a lack of financial literacy," said David Dintenfass, Fidelity's chief marketing officer and head of experience design. "People who are already Fidelity customers, they want to pass on their knowledge to their children. When we talked to them, they said they would love to have a product to develop better conversations with their children as soon as possible."

Fidelity began a pilot of the youth account program in the middle of 2020. While the sample size is admittedly small, only about a third of the pilot participants actually made trades. More of the teenagers in the pilot used their debit cards, 40%, said Jenn Samalis, senior vice president of customer acquisition and loyalty at Fidelity. 

The youth accounts offer educational materials for teenagers about finances, and they will transition into a standard brokerage account after the child turns 18. 

Nearly half of the money in the pilot accounts came from the teens themselves. Parents can monitor the teen's trading and spending activities with the youth account, but they cannot block transactions. That separates it from custodial accounts, which are widely available, where parents and guardians control the account until turning it over to the beneficiary.

"This is positioned as a way for parents to have good conversations with their children," Dintenfass said of the new youth account. "That, I think, has led to the ideas about responsibility, and that has led to responsible behavior."


MIAMI (AP) — Having fled economic and political chaos in Venezuela, Luisana Silva now loads carpets for a South Carolina rug company.

Top Stories


A pregnant woman was driving in the HOV lane near Dallas.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.


Indians Vote in the First Phase of the World’s Largest Election as Modi Seeks a Third Term

NEW DELHI (AP) — Millions of Indians began voting Friday in a six-week election that's a referendum on Narendra Modi, the populist prime minister who has championed an assertive brand of Hindu nationalist politics and is seeking a rare third term as the country's leader.

KOS - A one-year-old girl on the island of Kos died from choking on food, a forensic examination determined, and there weren’t any signs of sexual abuse which was originally thought involved.

BARCELONA, Spain  — Casper Ruud took his revenge against Stefanos Tsitsipas by winning the Barcelona Open final in straight sets on Sunday for his biggest career title, a week after losing to the Greek in the Monte Carlo Masters final.

DENVER  — Unlike their crowd that drowned out the Los Angeles Lakers' pregame introductions, the defending NBA champion Denver Nuggets were a little late to the playoff party Saturday night.

MADRID — With a late strike by Jude Bellingham, Real Madrid took a huge step toward winning the Spanish league.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

You may unsubscribe at any time using the link in our newsletter.