How to Open a Custodial Investment Account

An investment account, often called a brokerage account, is what you will need in order to buy stocks or bonds. If you are under 18 years old, you will be opening what is called a "custodial account." That basically means a parent has to help you do it. The parent will also have access to the account and have to sign some papers to get it set up.

First, you will need to open a basic checking account at a bank. You can do that easily online, or by going to your local bank and having a banking representative help you. Then you have to sit down with a parent and open your custodial investment account. Once you have that done, you will enter your checking account information into your custodial account. Then, when the money you earn is deposited into your checking account, you can transfer some of that money into your custodial account and use that money to buy stocks, bonds, or electronically traded funds (ETF). ETFs give you the option to invest small amounts of money into real estate, or gold, or Bitcoin, or lots of other investments. (More on ETFs in a future post!)

Investopedia article "What is a Custodial Account?" gives you some more detailed information. But the truth is, some of these articles can be confusing and make it seem more complicated than it really is. Don't let that intimidate you. I did this with my dad and it wasn't complicated at all. The best way to go about it is to just sit down with a parent and search "Open a custodial account for my child." You'll find lots of articles and videos that explain in detail how to do it. You'll also see links to brokerage companies like Charles Schwab, Fidelity, Vanguard, Wells Fargo, and others. You can simply click the company of your choice, go to their website, and get started. Again, it takes some work, but it is sooooo worth it and is the key first step in securing your financial future!

Here's one video to watch that I liked from Jacob Wade who is the founder of Roadmap Money. And there are lots more videos out there. Good luck, and happy investing!