Fidelity Youth Account

How it works day to day

A parent or guardian needs their own Fidelity account, such as a brokerage, cash management, IRA or managed account; both can be opened at the same time, and a workplace 401(k) doesn't count. The parent starts the application for the teen, who then gets their own Fidelity Youth app and sign-in. The account is for US residents only.

Money comes in from the parent's Fidelity account, usually instantly, from a teen's own bank account, by check deposit in the app, or from a job by direct deposit. Teens can request money from you in the app. Fidelity generally limits deposits to $30,000 a calendar year.

Teens choose what to buy, from $1 with fractional shares: most US stocks, some ETFs (funds that trade like a stock) and Fidelity mutual funds. Options, margin, short selling, crypto, penny stocks ($5 a share or less), IPOs and leveraged ETFs are blocked. Uninvested cash waits in a Fidelity money market fund.

The optional Visa debit card spends straight from the account, with daily purchase and ATM limits that Fidelity sets and can change. Fidelity reimburses ATM fees for Youth Account owners and charges no foreign transaction fee. Parents can cancel the card at any time but can't set their own limits or block shops.

What kids actually learn

This is a real investing account, so the lesson is real too: prices go up and down, and a single company can fall a long way. Start with a fund that holds hundreds of companies before your teen picks single stocks, and only invest money they won't need for a few years. Agree a small amount you both accept could be lost.

Cash in the account earns a little in the money market fund. Its yield is variable; Fidelity's main government money market fund showed a 3.52% seven-day yield on October 22, 2026, which would be about $3.50 a year on $100 if it stayed there. Compare that with what an investment fund has done over several years, and talk about why the higher potential return comes with the chance of losing money.

Fidelity's app has teen articles and videos on saving, budgeting and investing basics. There are no quizzes or chore charts, so a monthly look at the statement together does most of the teaching.

Safety, privacy and who's responsible

The teen owns the account and the money is legally theirs. It is not a custodial account, where an adult manages a child's money. Parents can see everything but can't trade or withdraw. Fidelity's parent agreement still makes the parent responsible for the teen's use of the account, including any fees the teen doesn't pay, and says Fidelity won't monitor the teen's activity for you. Earnings can be taxable to the teen, large gifts into the account can mean the giver has to file a gift tax return, and a large balance in the teen's name may affect college financial aid; Fidelity suggests asking a tax adviser.

The money isn't held in a bank account, so there is no FDIC insurance: investments and the money market fund can lose value. Instead the account is covered by SIPC, which protects up to $500,000 of securities and cash (including up to $250,000 of cash) if a brokerage firm fails; it does not cover investment losses. Fidelity also offers its Customer Protection Guarantee for unauthorized activity in the account (not debit card fraud, which falls under the card's own terms). Only the teen can take money out, and apart from the card's daily limits there is no cap: they can move the whole balance to another bank, by wire or by check. Either you or your teen can close the account at any time; any investments are sold and the money is sent as a check in the teen's name, which can lock in a loss or create a taxable gain. Your teen locks the card and sets up alerts, including card-purchase alerts sent to your phone, which Fidelity's parent agreement asks them to add. Report a lost card by calling the number on the card, and any strange account activity to Fidelity at once (within 30 days at the latest) to stay covered by the guarantee, and teach your teen never to share their sign-in or card details; if they do, Fidelity's guarantee won't cover any losses. Scammers target young investors with "guaranteed" stock tips, crypto offers and requests to send money or gift cards; anyone promising quick, sure profits is running a scam.

Fidelity says it uses a teen's contact details for account messages and won't market other financial products to them directly, though they may see general Fidelity ads. Because the account is for 13 and up, COPPA, the US children's privacy law for under-13s, doesn't apply, and Fidelity has no separate children's privacy policy for it; Fidelity's general privacy policy covers the teen. The Fidelity Youth app is rated 4+ on the App Store, and Apple's label lists purchases, financial info, contact info, user content and identifiers as linked to you, with search history, usage data and diagnostics collected but not linked.

In August 2024 a breach of Fidelity's systems exposed the personal data of about 77,000 customers. In 2026 Fidelity paid a $1.25 million fine to Massachusetts' securities regulator, which also said Fidelity didn't notify many affected relatives and minor children, and agreed to a $2.5 million class settlement. Turn on two-step sign-in for both your account and your teen's.

Who it's best for

Teens 13 to 17 who want to start investing and are ready to make their own choices. A good start for younger teens is one broad fund and a set monthly amount, moving to picking their own stocks as they show they're ready. It suits families where a parent already uses Fidelity or is happy to open a free account. It also works as a fee-free debit card for a teen with a first job.

If you want to approve every trade or set spending limits, Greenlight's investing plan, from $10.98 a month, gives you that control and starts at 8. If you only want a card and savings for a younger child, Capital One MONEY is free from age 6.