RKT Stock – Kids and Money: Fidelity Youth Investment App Targets Gen Z and beyond [Column] | Money
Ask teens the names of their favorite shoe and apparel companies, fast-food outlets, and mobile phone retailers, and brands like Nike, Chipotle, and T-Mobile are at the top of many lists.
But what is your favorite investment brand for teens? Fidelity wants to be one of them.
This is one of the motivations behind the introduction of Fidelity Investments’ new “Youth Account” product. Jill Schlesinger previously mentioned Fidelity’s youth accounts in a column on May 31st, how to allow teens to invest while at the same time providing the right education to make wise choices. I explained about. Here are the details of the new product.
Designed for teens aged 13-17, the Fidelity Youth Account includes a mobile app with streamlined money management and content for teens on savings and investment.
Fidelity has long promoted a swarm of educational information for fledgling investors on its website. And investment giants sell Ross IRAs and other investment products to younger clients. However, the new youth account released last month after being tested by the family is much more ambitious.
The Fidelity app can be used for stock trading, exchange-traded funds, or investment trusts. Your account comes with a debit card that you can link to the Venmo and PayPal apps to make peer-to-peer payments.
To sign up, teens need a parent with a Fidelity account. This parent can monitor young investors and be alerted when a transaction is made or when a debit card is swiped. However, unlike other products on the market, parents cannot block transactions.
Teens have their own logins and passwords that parents cannot access. Similarly, teens do not have access to their parents’ Fidelity accounts.
There are no transaction fees, subscription fees, account fees, minimum investment requirements, or domestic ATM fees.
Accounts allow fractional trading and give young people the ability to buy less than the total share of shares in popular companies such as: Amazon.com Microsoft currently sells for hundreds or thousands of dollars.
How many children want to invest in the stock market? The stock market was once a foreign territory for high school children. Not so anymore.
These criteria make it essential for parents and their young investors to keep their lines of communication open and discuss stock selection and other investment strategies.
Young investors are in large numbers during the pandemic, especially as Robin Hood and other trading apps have become the platform of choice for buyers to bid on stocks in a rocket-like way at GameStop, AMC Entertainment and other companies. I entered the market.
Fidelity has 26 million retail brokerage accounts, including teens. Investors opened 4.1 million new securities accounts in Fidelity last quarter, 40% of which were opened by people under the age of 35.
Fidelity promotes youth accounts as a way to teach teens about money management and set investment goals for long-term and other important financial education concepts. During the testing phase, Fidelity said 90% of parents sat down with their teenage children and used their accounts as a moment of education.
Anything that teaches teens the habit of managing money responsibly, especially for many who don’t know much about how to do Wall Street.
However, make sure this wrinkle is okay. When a youth account investor turns 18, your youth account will automatically switch to a standard Fidility securities account. Therefore, this product is more than just an “investment 101”, it’s a bold move by Fidelity to build long-term customer relationships.
Kids and Money: Fidelity Youth Investment App Targets Gen Z and beyond [Column] | Money
Source link Kids and Money: Fidelity Youth Investment App Targets Gen Z and beyond [Column] | Money