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Best Children's accounts....?

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  • Best Children's accounts....?

    My high school teenagers have a checking account, a debit/credit card and a Roth IRA account. However, as one kid goes off to college, I want them to have a checking account as well as a savings account, where they could invest their money as well. While their bank offers both accounts, I'd like to have them start investing their savings themselves.

    I've heard of ACORNS as good/easy way for them to save some money as well as invest some money. Thoughts about ACORNS? Any other apps / websites / programs to consider? Thanks, in advance!

  • #2
    They could use any brokerage they want....I don't understand.


    • #3
      I wasn't sure if there were certain Apps/brokerages that helped teens / college kids transition to being mindful with their finances, helping them save, prompt them to be more financially savvy etc.


      • #4
        I would just get any regular brokerage account. Acorns and the like are just gimmicks. I doubt acorns can teach them to be financially savvy better than you can.


        • #5
          The specialty of brokerages like acorns/stash/robinhood is their ability to transact fractions of shares. If you think the only way they'd be able to invest is by purchasing share fractions, then you could definitely go down that route.

          I personally would not, because my impression of these apps is they have seemed to breed a culture that is more like betting at the racetrack than actual investing. Take a browse through the robinhood reddit to see what I mean.

          I'm a little like Peds - what are you asking here? Are you asking if they should have a taxable brokerage acct instead of a savings? They should have both?


          • #6
            Savings account and investing are two different skills and purposes. A college student typically saves for a purchase (less than 5 years). Use the savings and teach the Roth contribution if they have income. Let them “manage investments” in the Roth. Taxable adds little value.


            • #7
              A Vanguard, Fidelity, or Schwab account and a link to If You Can should work.

              Or you can install Robinhood and point them towards Wall Street Bets. But that would be a terrible idea.