Do I need a custodial account?

You likely want a custodial account. A custodial account is a common way for adults to start an investment account for a child, whether their own child, a grandchild or another minor.

Who sets up a custodial account?

Custodial accounts are established by an adult, typically a parent, for the benefit of a child who is younger than 18 or 21 years old (depending on the account type). Financial institutions like brokers, investment platforms and banks offer custodial accounts, and financial advisors can help you set them up.

What is a custodial account?

Typically offered by brokers, robo-advisors and investing apps, custodial accounts are managed by a custodian for the benefit of a child who is under age 18 or 21 (varies by state). Besides earning great returns, perhaps the biggest advantage of custodial accounts are the opportunity to teach children about money and investing.