The Fidelity Youth Account is a brokerage account designed specifically for teens aged 13 to 17. Teens can invest in stocks, ETFs, and Fidelity mutual funds — including Fidelity ZERO funds at 0.00% expense ratio. There are no account minimums, no fees, and no commissions. It is one of the most accessible ways for a teenager to start investing with real money in 2026.
What Is the Fidelity Youth Account?
Launched in 2021, the Fidelity Youth Account is a first-of-its-kind brokerage account in the US market designed for minors to own and operate directly, with parental oversight. Unlike a traditional custodial account (UGMA/UTMA), the account is owned by the teen — not held in trust by the parent until a certain age.
Key features:
- Available for teens aged 13–17
- Opened and supervised by a parent or guardian who is an existing Fidelity customer
- $0 account fees, $0 minimum balance, $0 commissions on US stocks and ETFs
- Comes with a debit card for everyday spending (optional)
- Parent can monitor activity and restrict trading permissions
- Account converts to a standard brokerage account when the teen turns 18
How It Differs from a Custodial Account
| Feature | Fidelity Youth Account | UGMA/UTMA Custodial Account |
|---|---|---|
| Account owner | The teen | Parent (held in trust for minor) |
| Age transfer | Converts at 18 (no transfer) | Assets transfer to teen at 18–21 |
| Investment options | Stocks, ETFs, Fidelity mutual funds | Stocks, ETFs, mutual funds, more |
| Tax treatment | Teen’s tax rates apply | Teen’s tax rates apply (Kiddie Tax may apply) |
| Parental control | Ongoing oversight + restrictions | Full control until transfer age |
| Account fees | $0 | $0 at Fidelity |
The Youth Account is simpler to set up and doesn’t require formal custodial paperwork. However, because it is not a UGMA/UTMA account, it does not count as a student asset on the FAFSA in the same way — this may be a consideration for college financial aid planning.
Who Can Open a Fidelity Youth Account?
Requirements:
- Teen must be 13–17 years old
- Teen must be a US resident
- A parent or guardian must be an existing Fidelity customer (with their own Fidelity account)
- Parent provides their Social Security Number and the teen’s information
The parent does not need to hold any minimum balance — they just need an active Fidelity login.
What Can Teens Invest In?
Through the Youth Account, teens can invest in:
- US stocks (including fractional shares — minimum $1)
- US ETFs (all major ETFs: VOO, VTI, SCHD, etc.)
- Fidelity mutual funds (including Fidelity ZERO funds: FZROX, FZILX at 0.00%)
- Fidelity Index Funds (FXAIX, FSMAX, etc.)
Not available:
- Options trading
- Margin accounts
- Cryptocurrency
- Foreign stocks (international ADRs may be limited)
This keeps the experience appropriate for beginners and avoids high-risk instruments.
The Youth Account Debit Card
The Fidelity Youth Account comes with a Fidelity-branded debit card linked to the account’s cash balance. This allows teens to:
- Make everyday purchases (online and in-store)
- Withdraw cash from ATMs (fee reimbursement applies at some ATMs)
- Learn to manage spending alongside investing
Parents can set spending limits and monitor all transactions through the Fidelity Family App. This makes the Youth Account both a brokerage and a financial literacy tool.
Tax Considerations
The Youth Account is a taxable brokerage account. Gains and dividends are taxable. However, the tax rates that apply depend on the teen’s income:
- The Kiddie Tax rule may apply if the teen has unearned income (dividends, capital gains) above $2,500 in 2026 — amounts above that threshold are taxed at the parent’s rate. This applies for dependents under age 19 (or under 24 if a full-time student).
- For most teens with small accounts, Kiddie Tax impact will be minimal.
- In a Roth IRA (not the Youth Account), gains would be tax-free — but teens need earned income to contribute to a Roth IRA.
Note: If your teen has part-time job income, consider also opening a Roth IRA for teens — contributions up to earned income (max $7,000 for 2026) can be invested tax-free for life.
Worked Example: Starting at 15
A 15-year-old invests $50/month in FZROX (Fidelity ZERO Total Market Fund, 0.00% expense ratio) through the Youth Account:
| Age | Total contributions | Estimated value at 7% annualised |
|---|---|---|
| 18 | $1,800 | ~$2,000 |
| 25 | $6,600 | ~$10,000 |
| 35 | $12,600 | ~$30,000 |
| 65 | $42,600 | ~$240,000+ |
Starting early is the most powerful thing a teenager can do for long-term wealth. Even small amounts invested consistently from age 15 can compound dramatically over 50 years.
Parental Controls and Oversight
Parents have significant oversight through the Fidelity Family App:
- View all trades and balances in real time
- Set monthly spending limits on the debit card
- Restrict trading to view-only mode if needed
- Receive alerts for account activity
- Cannot trade in the account on the teen’s behalf — the teen must place their own trades (this is by design for learning)
Converting the Account at Age 18
When the teen turns 18, the Fidelity Youth Account automatically converts to a standard Fidelity brokerage account:
- All investments carry over
- The account becomes the young adult’s sole property
- Access to the full Fidelity platform opens up (options, margin, international stocks, etc.)
- The parent no longer has oversight access
Alternatives to the Fidelity Youth Account
| Account type | Who it’s for | Key features |
|---|---|---|
| Fidelity Youth Account | Teens 13–17 | Owned by teen, debit card, $0 fees |
| UGMA/UTMA at Fidelity | Any minor | Broader investment options, custodial structure |
| Custodial Roth IRA at Fidelity | Working teens | Tax-free growth, requires earned income |
| Schwab custodial account | Any minor | Similar to UGMA/UTMA, $0 fees |
If your teen has a job and earned income, a custodial Roth IRA is arguably a better long-term wealth vehicle because gains compound tax-free forever. The Youth Account and Roth IRA can be held simultaneously.
Internal Links
- Fidelity ZERO funds guide
- Best investments for a Roth IRA
- Fidelity vs. Vanguard: full comparison
- How to open a Fidelity account
- Fidelity Go robo-advisor review
- Fidelity investing hub
Bottom Line
The Fidelity Youth Account is one of the best financial tools a parent can give their teenager. It costs nothing, teaches real investing with real money, and includes debit card functionality for everyday financial literacy. If your teen wants to start investing and you bank or invest with Fidelity, there is no better starting point in 2026.
This article is for educational purposes only and does not constitute personalised investment advice. All investments carry risk, including the possible loss of principal.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy