{"id":8055,"date":"2019-11-05T03:13:13","date_gmt":"2019-11-05T07:13:13","guid":{"rendered":"https:\/\/marriagekidsandmoney.com\/?p=8055"},"modified":"2023-04-10T15:14:32","modified_gmt":"2023-04-10T19:14:32","slug":"how-do-i-open-a-brokerage-account-to-invest-for-my-kids","status":"publish","type":"podcast","link":"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/","title":{"rendered":"Where Can I Open a Brokerage Account to Invest for my Kids?"},"content":{"rendered":"\n<p>Our second question of the month comes in from Kevin from our <a href=\"https:\/\/marriagekidsandmoney.com\/fbgroup\" target=\"_blank\" rel=\"noreferrer noopener\">Thriving Families Facebook Community<\/a> \u2026\u00a0<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p><em>My kids are getting physical cash from grandparents for holidays. They are small denominations like $5 for Halloween, $1 for successful potty usage, etc.<\/em><\/p>\n\n\n\n<p><em>What kind of vehicle does everyone have set up for this? <\/em><\/p>\n\n\n\n<p><em>The easy solution is usually a savings account, but I'd love to get it in the market in some manner so the money can grow over their childhood.<\/em><\/p>\n\n\n\n<p><em>Do brokerage houses such as fidelity even allow kids to open accounts with say $10?<\/em><\/p>\n\n\n\n<p><em>Love to hear everyone's thoughts!<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p>What a great question Kevin! I\u2019m so glad you asked because it\u2019s not something that I\u2019ve covered very much on this show.&nbsp;<\/p>\n\n\n\n<p>To answer your second question right off the bat \u2026&nbsp;Yes, Fidelity does have a <a href=\"https:\/\/www.fidelity.com\/open-account\/custodial-account\">Custodial Brokerage Account option<\/a> (UTMA \/ UGMA) and with no minimum investment.<\/p>\n\n\n\n<p>So that money your kids are getting from Grandparents, Holidays or potty time success can start to build up with compound interest in the stock market. The Fidelity representative that I spoke to on the phone told me you can start with even a penny.<\/p>\n\n\n\t<div class=\"wp-block-jetpack-gif aligncenter\">\n\t\t<figure>\n\t\t\t\t\t\t\t<div class=\"wp-block-jetpack-gif-wrapper\" style=\"padding-top:68%\">\n\t\t\t\t\t<iframe src=\"https:\/\/giphy.com\/embed\/l0MYtAfMyiTNVQLfi\" title=\"penny\"><\/iframe>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/figure>\n\t<\/div>\n\t\n\n\n<p>What a great way to start conversations with your kids about investing and building wealth!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-we-re-saving-and-investing-for-our-kid-s-future\">How We're Saving and Investing for Our Kid's Future<\/h2>\n\n\n\n<p>As for your first question, I\u2019ll throw in my two cents on what I\u2019m doing with my kids on saving and investing for the future.&nbsp;<\/p>\n\n\n\n<p>Each week, our kids do 3 chores and they earn a dollar equivalent to their age.<\/p>\n\n\n\n<ul>\n<li>Zoey gets $7 because she\u2019s 7<\/li>\n\n\n\n<li>Calvin gets $5 because he\u2019s 5<\/li>\n<\/ul>\n\n\n\n<p>Outside of random birthday, holiday and monetary gifts from Grandparents, this is their only source of income currently (freeloaders!).&nbsp;<\/p>\n\n\n\n<p>With their money, our kids have been splitting it up between 3 jars.<\/p>\n\n\n\n<ul>\n<li>Spend<\/li>\n\n\n\n<li>Save<\/li>\n\n\n\n<li>Give<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/marriagekidsandmoney.com\/wp-content\/uploads\/2017\/04\/Jars.jpg?w=1200&#038;ssl=1\" alt=\"Save Save and Give Jars\" class=\"wp-image-1220\" data-recalc-dims=\"1\"\/><\/figure>\n\n\n\n<p>Recently, I\u2019ve upped this to 5 jars by adding \u201cCollege\u201d and \u201cInvest\u201d.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-our-kid-s-5-jar-chore-reward-system\">Our Kid's 5-Jar Chore & Reward System<\/h2>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-spend\">Spend<\/h4>\n\n\n\n<p><strong>Purpose<\/strong>: This money is meant for our kids to have fun with. We help guide them in making smart purchases and limit their bigger buys to once per month.&nbsp;<\/p>\n\n\n\n<p>As Zoey gets older, we\u2019re going to consider a debit card-based system like <a href=\"https:\/\/marriagekidsandmoney.com\/famzoo\">FamZoo<\/a>. This way she can make her own online purchases and not have to carry around the cash when she goes out with friends<\/p>\n\n\n\n<p><strong>Amount<\/strong>: 60% of their income.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-save\">Save<\/h4>\n\n\n\n<p><strong>Purpose<\/strong>: Our Save Jar allows our kids to save up for the more long term and bigger ticket items. For example, Zoey bought her latest bike with the money she saved up in her Save jar.<\/p>\n\n\n\n<p>After some time, the Save Jar became too full so we opened an <a href=\"http:\/\/ally.com\">Ally Savings Account<\/a> for her. Now at the end of each month, we empty her jar and deposit the money into her Ally account.&nbsp;<\/p>\n\n\n\n<p><strong>Amount<\/strong>: 10% of their income.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-give\"><strong>Give <\/strong><\/h4>\n\n\n\n<p><strong>Purpose<\/strong>: Being more generous is something <a href=\"https:\/\/marriagekidsandmoney.com\/why-im-increasing-my-charitable-giving-and-how-my-kids-are-helping\/\">I\u2019m currently practicing with my children<\/a>.&nbsp;Each quarter we get together for a tradition I\u2019ve dubbed \u201cThe Big Give\u201d. We empty their Give Jars, count up the money and review different charities they are interested in giving to.<\/p>\n\n\n\n<p>Last month, Zoey wanted to give to the <a href=\"http:\/\/worldwildlife.org\">WWF<\/a> to save Pandas and Calvin wanted to help kids who don\u2019t have money for lunch. He gave his money to <a href=\"http:\/\/feedingamerica.org\">Feeding America<\/a>.&nbsp;<\/p>\n\n\n\n<p>My wife and I match these donations dollar for dollar.&nbsp;<\/p>\n\n\n\n<p><strong>Amount<\/strong>: 10% of their income.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-college\"><strong>College<\/strong><\/h4>\n\n\n\n<p><strong>Purpose<\/strong>: This one was a recent addition, but I thought it was important for a few reasons.&nbsp;<\/p>\n\n\n\n<ul>\n<li>I want my kids to understand that college is a serious investment and the whole family needs to save up for it (including them).&nbsp;<\/li>\n\n\n\n<li>It\u2019ll give us a chance to discuss compound interest and investing.<\/li>\n\n\n\n<li>Lastly, dialogue and conversation about college and their career-interests will happen more often.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>We want our <a href=\"https:\/\/marriagekidsandmoney.com\/ways-parents-can-help-their-kids-graduate-college-without-debt\/\">kids to graduate college student debt-free<\/a>. With the cost of college continuing to rise and rise, it\u2019s going to take the whole family to get them through it.&nbsp;<\/p>\n\n\n\n<p><strong>Amount<\/strong>: 10% of their income.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"wpbf-responsive-embed\"><iframe loading=\"lazy\" title=\"5 Ways Parents Can Help Their Kids Graduate College Without Loans\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/JWi6NVYpWmE?start=207&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-invest\"><strong>Invest<\/strong><\/h4>\n\n\n\n<p><strong>Purpose<\/strong>: My late mother-in-law started this tradition for our family. She gave $1,000 to each of our kids and wanted to invest for their future. Not for college or retirement, just for something special that they may want when they are adults. I loved that.&nbsp;<\/p>\n\n\n\n<p>To honor her memory and keep that tradition alive, our kids will contribute to their custodial (UTMA) brokerage account. Since we started young, this account will continue to grow and leave them with a nice 4 or 5-figure sum in their 20\u2019s.&nbsp;<\/p>\n\n\n\n<p><strong>Amount<\/strong>: 10% of their income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-where-should-i-get-my-kid-s-brokerage-account\">Where Should I Get My Kid's Brokerage Account?<\/h2>\n\n\n\n<p>We\u2019ve been using <a href=\"https:\/\/personal.vanguard.com\/us\/whatweoffer\/college\/vanguardugmautma\">Vanguard for their UTMA account<\/a> for the past year, but Kevin, now I\u2019m considering Fidelity!<\/p>\n\n\n\n<p>They have zero minimums and no account fees while Vanguard has a $1,000 minimum for Target Date Funds and a $3,000 minimum for mutual funds. Also, they charge a <a href=\"https:\/\/personal.vanguard.com\/us\/whatweoffer\/college\/ugmautmaatglance\">$20 annual fee if your balance is less than $10,000<\/a>. Since that will pretty much be the entirety of my kid's childhood, I\u2019m thinking a switch to <a href=\"https:\/\/www.fidelity.com\/open-account\/custodial-account\">Fidelity<\/a> might make more sense.<\/p>\n\n\n\n<p><em>(UPDATE: Just spoke to Vanguard on the phone about this. You can get the $20 fee waived if you sign up for e-statement delivery! Either way, they should update that on their website.)<\/em><\/p>\n\n\n\n<p>Another player to consider that has low-cost index funds and a custodial program is <a href=\"https:\/\/www.schwab.com\/public\/schwab\/investing\/accounts_products\/accounts\/college_savings\/custodial_account\">Schwab<\/a>. Like Fidelity, they have:<\/p>\n\n\n\n<ul>\n<li>$0 account open or maintenance fees.&nbsp;<\/li>\n\n\n\n<li>Account minimum: $0<\/li>\n\n\n\n<li>$0 online stock and ETF commissions<\/li>\n<\/ul>\n\n\n\n<p>I love competition. That\u2019s when the consumer wins! In this case, that\u2019s when our kids win.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s to second-generation wealth-building, Kevin!<\/p>\n\n\n\n<p>I hope my thoughts are helpful and best of luck saving and investing for your kid's future.&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-are-you-investing-for-your-kids-in-a-brokerage-account-if-so-where-do-you-invest\">Are you investing for your kids in a brokerage account? If so, where do you invest?<\/h4>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-please-let-us-know-in-the-comments-below\">Please let us know in the comments below.<\/h4>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/i2.wp.com\/www.marriagekidsandmoney.com\/wp-content\/uploads\/2019\/11\/Copy-of-Copy-of-Copy-of-How-we-paid-off-27000-of-credit-card-debt-after-our-wedding-1.png?fit=683%2C1024&ssl=1\" alt=\"\" class=\"wp-image-8066\"\/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"author":3,"featured_media":10811,"comment_status":"open","ping_status":"open","template":"","epcats":[675,733],"eptags":[875,730,840,776,844,876,846],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v22.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Where Can I Open a Brokerage Account to Invest for my Kids?<\/title>\n<meta name=\"description\" content=\"Kevin wants to open a UTMA brokerage account for his kids. I review a 5-jar saving system that we use and brokerage partners for him to consider.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Where Can I Open a Brokerage Account to Invest for my Kids?\" \/>\n<meta property=\"og:description\" content=\"Kevin wants to open a UTMA brokerage account for his kids. I review a 5-jar saving system that we use and brokerage partners for him to consider.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/\" \/>\n<meta property=\"og:site_name\" content=\"Marriage Kids and Money\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/andyhillmkm\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-10T19:14:32+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@andyhillmkm\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/\",\"url\":\"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/\",\"name\":\"Where Can I Open a Brokerage Account to Invest for my Kids?\",\"isPartOf\":{\"@id\":\"https:\/\/marriagekidsandmoney.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/marriagekidsandmoney.com\/wp-content\/uploads\/2019\/11\/How-do-I-set-up-a-brokerage-account-to-invest-for-my-kids-wordpress-1.jpeg?fit=1024%2C576&ssl=1\",\"datePublished\":\"2019-11-05T07:13:13+00:00\",\"dateModified\":\"2023-04-10T19:14:32+00:00\",\"description\":\"Kevin wants to open a UTMA brokerage account for his kids. I review a 5-jar saving system that we use and brokerage partners for him to consider.\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/marriagekidsandmoney.com\/wp-content\/uploads\/2019\/11\/How-do-I-set-up-a-brokerage-account-to-invest-for-my-kids-wordpress-1.jpeg?fit=1024%2C576&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/marriagekidsandmoney.com\/wp-content\/uploads\/2019\/11\/How-do-I-set-up-a-brokerage-account-to-invest-for-my-kids-wordpress-1.jpeg?fit=1024%2C576&ssl=1\",\"width\":1024,\"height\":576},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/marriagekidsandmoney.com\/#website\",\"url\":\"https:\/\/marriagekidsandmoney.com\/\",\"name\":\"Marriage Kids and Money\",\"description\":\"Strengthen your family tree and live financially free.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/marriagekidsandmoney.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Where Can I Open a Brokerage Account to Invest for my Kids?","description":"Kevin wants to open a UTMA brokerage account for his kids. I review a 5-jar saving system that we use and brokerage partners for him to consider.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/","og_locale":"en_US","og_type":"article","og_title":"Where Can I Open a Brokerage Account to Invest for my Kids?","og_description":"Kevin wants to open a UTMA brokerage account for his kids. I review a 5-jar saving system that we use and brokerage partners for him to consider.","og_url":"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/","og_site_name":"Marriage Kids and Money","article_publisher":"http:\/\/www.facebook.com\/andyhillmkm","article_modified_time":"2023-04-10T19:14:32+00:00","twitter_card":"summary_large_image","twitter_site":"@andyhillmkm","twitter_misc":{"Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/","url":"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/","name":"Where Can I Open a Brokerage Account to Invest for my Kids?","isPartOf":{"@id":"https:\/\/marriagekidsandmoney.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/#primaryimage"},"image":{"@id":"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/marriagekidsandmoney.com\/wp-content\/uploads\/2019\/11\/How-do-I-set-up-a-brokerage-account-to-invest-for-my-kids-wordpress-1.jpeg?fit=1024%2C576&ssl=1","datePublished":"2019-11-05T07:13:13+00:00","dateModified":"2023-04-10T19:14:32+00:00","description":"Kevin wants to open a UTMA brokerage account for his kids. I review a 5-jar saving system that we use and brokerage partners for him to consider.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/marriagekidsandmoney.com\/podcast\/how-do-i-open-a-brokerage-account-to-invest-for-my-kids\/#primaryimage","url":"https:\/\/i0.wp.com\/marriagekidsandmoney.com\/wp-content\/uploads\/2019\/11\/How-do-I-set-up-a-brokerage-account-to-invest-for-my-kids-wordpress-1.jpeg?fit=1024%2C576&ssl=1","contentUrl":"https:\/\/i0.wp.com\/marriagekidsandmoney.com\/wp-content\/uploads\/2019\/11\/How-do-I-set-up-a-brokerage-account-to-invest-for-my-kids-wordpress-1.jpeg?fit=1024%2C576&ssl=1","width":1024,"height":576},{"@type":"WebSite","@id":"https:\/\/marriagekidsandmoney.com\/#website","url":"https:\/\/marriagekidsandmoney.com\/","name":"Marriage Kids and Money","description":"Strengthen your family tree and live financially free.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/marriagekidsandmoney.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"}]}},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/marriagekidsandmoney.com\/wp-json\/wp\/v2\/podcast\/8055"}],"collection":[{"href":"https:\/\/marriagekidsandmoney.com\/wp-json\/wp\/v2\/podcast"}],"about":[{"href":"https:\/\/marriagekidsandmoney.com\/wp-json\/wp\/v2\/types\/podcast"}],"author":[{"embeddable":true,"href":"https:\/\/marriagekidsandmoney.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/marriagekidsandmoney.com\/wp-json\/wp\/v2\/comments?post=8055"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marriagekidsandmoney.com\/wp-json\/wp\/v2\/media\/10811"}],"wp:attachment":[{"href":"https:\/\/marriagekidsandmoney.com\/wp-json\/wp\/v2\/media?parent=8055"}],"wp:term":[{"taxonomy":"epcats","embeddable":true,"href":"https:\/\/marriagekidsandmoney.com\/wp-json\/wp\/v2\/epcats?post=8055"},{"taxonomy":"eptags","embeddable":true,"href":"https:\/\/marriagekidsandmoney.com\/wp-json\/wp\/v2\/eptags?post=8055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}