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As a parent, I want to give my daughter the best opportunities in life, whether that means going to college, traveling, or simply taking a break to enjoy the little things. That’s why I decided to open a custodial account for her. By starting early, even small contributions can grow over time and give her financial flexibility when she turns 18.
In this post, I’ll share why I chose Fidelity, how easy the process was, and why it’s important to invest the money you put in—because if it just sits there, it won’t grow. If you’ve been considering opening a savings or investment account for your child, I hope my experience helps!
Why I Opened a Custodial Account
Like many parents, I want to set my child up for financial success. I didn’t necessarily open this account just for college savings—I wanted to give my daughter options. By the time she graduates high school, she can use the money for whatever she decides:
• College tuition or expenses
• Traveling to experience the world
• Taking a break before jumping into adulthood
I love the idea of giving her a financial head start, and even though I’m not contributing a lot right now, every little bit helps.
Why I Chose Fidelity
I first became interested in investing during the pandemic. Like many people, I started learning more about the stock market and different ways to grow wealth. I’m not a financial expert, but I definitely know more now than I did back then.
Since I already have a Roth IRA with Fidelity, opening a custodial account for my daughter with them was an easy choice. I trust their platform, their fees are low, and they offer a wide variety of investment options.
How I Opened the Account
The process was surprisingly simple! Here’s how it went:
1. I logged into my Fidelity account. Since I already had a Roth IRA, applying for a custodial account was even easier.
2. I provided my daughter’s information. I needed her Social Security number and some basic details.
3. I funded the account with $75. This money was actually given to us before she was born by family members, so it felt like the perfect way to start her investment journey.
Once the account was open, I checked it periodically to see how it was growing. I currently only add money when family or friends gift her cash for birthdays or special occasions. Right now, we don’t have the extra income to contribute regularly, but even small amounts can add up over time.
Why Investing Matters
It’s important to remember that just putting money into a custodial account isn’t enough—you have to invest it for it to grow.
We decided to invest the $75 into the Fidelity 500 Index Fund (FXAIX), which tracks the S&P 500. This means her money is spread across 500 of the biggest companies in the U.S., helping it grow over time.
Fidelity offers thousands of stocks, ETFs, and mutual funds to choose from, so it’s important to do your own research and pick investments that match your goals and risk tolerance. If you’re not sure where to start, it may be worth speaking to a financial advisor or reading up on different investment options.
Investment Choices & Future Plans
Right now, I keep it simple and check the account each month to see how it’s performing. I’m not actively investing more at the moment, but as she gets older, I’d love to involve her in the process—teaching her about money, investing, and making smart financial decisions.
The great thing about a custodial account is that I have control over it while she’s young, but once she turns 18 (or 21, depending on the state), it becomes her money to use however she sees fit.
Want to Teach Your Child About Money?
If you’re interested in teaching your child about money from an early age, a great place to start is books! One of my favorite board books on money is “Bunny Money” by Rosemary Wells. It’s a fun and engaging way to introduce the concept of spending and saving to young kids.
More children’s book on the topic of money here.
Do You Have a Savings or Investment Account for Your Child?
I’d love to hear from other parents! Do you have a custodial account, a savings account, or another way you’re saving for your child’s future? Let me know in the comments!
By starting small and being consistent, even the tiniest contributions can grow into something meaningful. I’m excited to watch this account grow and, more importantly, to teach my daughter the value of financial independence.
Would you consider opening a custodial account for your child? Let’s chat in the comments!
Disclaimer: Not Financial Advice
I am not a financial advisor, and this post is based on my personal experience. Investing involves risk, and you should always do your own research before making financial decisions. The investments mentioned in this post are not recommendations—please consult a professional if you need guidance.