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As financial literacy becomes increasingly essential, more parents are looking for ways to teach their children about investing from a young age. One of the best ways to introduce kids to investing is by setting up a custodial account. These accounts allow minors to start building wealth early, giving them a head start in learning how the stock market works.
If you’re a parent or guardian considering this option for your child, it’s crucial to choose a custodial account that offers optimal benefits, low fees, and diverse investment opportunities. In this guide, we’ll cover the best custodial accounts for kids to start investing in 2025, along with their key features, advantages, and things to consider before opening an account.
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What is a Custodial Account?
A custodial account is a financial account opened on behalf of a minor, managed by a parent or guardian until the child reaches adulthood (typically 18 or 21, depending on the state). These accounts allow children to receive financial gifts, invest in stocks, ETFs, and even cryptocurrencies, depending on the provider.
The two most common types of custodial accounts are:
A custodial account offers tax advantages, financial growth potential, and a valuable opportunity to teach kids responsible money management.
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Best Custodial Accounts for Kids in 2025
1. Fidelity Youth Account
The Fidelity Youth Account is one of the top choices for parents who want to give their kids early exposure to investing. Unlike most custodial accounts, Fidelity’s Youth Account is available to teens aged 13-17 and is managed by the teen, with parental oversight.
Key Features:
Why It’s Great for Kids:
This account is an excellent choice for teenagers who are ready to start understanding how investing and saving work. It enables them to experience financial responsibility firsthand while still being guided by their parents.
[Learn more about Fidelity’s account here.]
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2. Charles Schwab Custodial Account
The Charles Schwab Custodial Account is another top pick for parents hoping to invest for their children’s futures. It offers diverse investment options and zero account fees, making it a great long-term option.
Key Features:
Why It’s Great for Kids:
This custodial account is best for parents who want to take a hands-on approach to long-term investing for their children. Schwab also provides solid educational resources, helping young investors learn about the markets.
[Check out Charles Schwab’s custodial account here.]
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3. Greenlight + Invest
For parents who want an all-in-one platform that teaches spending, saving, and investing, Greenlight + Invest is an excellent choice. This platform started as a smart debit card for kids but now includes a robust investing option.
Key Features:
Why It’s Great for Kids:
Greenlight is perfect for hands-on financial education, allowing kids to experiment with investing in stocks and ETFs. The app’s subscription model may appeal to families looking for guided educational content.
[Check out Greenlight’s custodial account here.]
4. Stockpile Custodial Account
If you’re looking for an account with a fun and engaging way to introduce kids to investing, Stockpile is a unique option. This platform allows users to purchase fractional shares of stocks and even buy gift cards for stock investments.
Key Features:
Why It’s Great for Kids:
This custodial account gamifies investing, making it more engaging for children. Stockpile’s gifting feature allows relatives to contribute to a child’s investment portfolio easily.
When selecting a custodial account for your child, there are several factors to consider:
[Check out StockPile’s custodial account here.]
Final Thoughts
Opening a custodial account for your child is one of the best gifts you can give them—a strong financial foundation for the future. Whether you choose the Fidelity Youth Account, Charles Schwab, Greenlight + Invest, or Stockpile, each offers excellent options for teaching kids about money and investing.
It’s never too early to start. By exposing your child to smart financial habits today, you can help them build wealth and confidence in managing money through their lifetime.
Would you like to learn more about other investment options for kids or personal finance in 2025? Check out this guide on smart investing tips for beginners.
