Teen bank account

[Anonymous]

Anonymous wrote:Did anyone open a teen Fidelity account? If so how do you like it.

We have Fidelity accounts for our kids but they’re over 18 so not teen accounts. Highly recommend. You earn interest (not a ton but some) and can use any ATM with no fees. We all have Fidelity accounts.

[Anonymous]

Anonymous wrote:This come up every week. Don't open anything for the teen because the amount is so small, interest is small, and the trouble you have to go through. They can open Capital One when they are 18.
Please concentrate on the teen doing their homework about stocks, Roth IRA, Traditional IRA, 401k, credit cards.
Have them pick 5 stocks they would like to buy with the $2500 and paper trade (not real trading).
Tesla is a little under $400 right now, so they would get 6 shares. Check back once a month to see if they would have made money or 'lost money'. If it's $450 a month from now, they made money.
Money sitting in a saving account teaches absolutely nothing. It doesn't even teach your kid that Chase just took the $2500 and loaned it out for 15% while paying your kid 3%.
You and your kid have got to be comfortable buying stocks and holding them long term just to be able to keep the purchasing power of the $2500.
Robinhood is an excellent for such small amounts. You can open it for you and then simply give the kid his money back once they turn 18.
There is so much to learn about personal finance, investing, taxes - soon to be young adult will need to know all that and parents are still going for savings and checking account for them.
If you have great credit, the kid should be an Authorized user on one of your cards that reports to credit bureaus. Once they are 18, you get them off to their own cards with great credit.

robinhood is a TERRIBLE idea. It teaches kids about day trading, not the financial wisdom of staying in an index for the long term.

conversely is IS important for kids to learn the basics of money management, which includes how to use a checking account (ie avoiding fees and overdrafts), how to use (or not use) credit, and how to budget.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Did anyone open a teen Fidelity account? If so how do you like it.

We have Fidelity accounts for our kids but they’re over 18 so not teen accounts. Highly recommend. You earn interest (not a ton but some) and can use any ATM with no fees. We all have Fidelity accounts.

Does Fidelity actually refund ATM fees or just not charge them?

[Anonymous]

Amazed that this got to 2 pages with no discussion of the actually important thing: fees and overdraft protection. I did some research and it seemed that only CapOne had a a no-fee teen account. Does anyone else have no-fee ideas? Since the fees are fixed (like $15 monthly) they would eat up any interest earned on small deposit, most likely.

[Anonymous]

Your teen won't have to report bank account tax return unless it's significant - but if they are paid on a 1099 and make (I believe $400 or more) or more they will pay self employment tax (social security and medicare).

Our teen has a 1099 job and will need to file taxes this year.