Details of Fidelity Youth Accounts
While the business of investing does require a certain level of oversight, the launch of Fidelity Youth Accounts by the company shows the massive enthusiasm seen amongst young people right now. In fact, over the course of the first quarter of 2021, Fidelity saw 1.6 million new accounts opened by retail investors who were 35 or younger. This represents an increase of 222% in comparison to the same quarter last year. Seeing the massive growth of young investors, the Fidelity Youth Account program will help educate and bring in investors even earlier than before.
The Fidelity Youth Account will allow for minors between the ages of 13 and 17 to build their own brokerage accounts where they can make business investment decisions with their money. Unlike Robinhood, the only other option for investing as a young person, the finance company will also allow for parents to monitor and oversee account activity. Once the teenager turns 18, the account will automatically transition into a regular retail brokerage account at no additional cost.
The company first launched Fidelity Youth Accounts through a small pilot program that saw considerable success. In fact, 73% of teenagers in the program felt more confident in their future financial outlook while 9 out of 10 parents used the program to help teach their children more about investing and financial literacy.
Financial Education and Other Features
At its core, the investing business is trying to generate a larger generation of financial literacy within the company. Among other traditional features of a retail brokerage account, users of Fidelity Youth Accounts will have access to education modules and helpful articles provided by the company. For parents, the company looks to make the youth account program a vital tool in helping them teach their kids about investing.
The tools provided are a part of the larger campaign by the business, Fidelity Financial Forward. The campaign works with nonprofits, schools, and young individuals to increase financial literacy amongst young people through different educational tools and resources. Since its launch in 2015, the business has reached more than 400,000 students across the United States (US).
When commenting on the launch of Fidelity Youth Accounts, Jennifer Samalis, senior vice president of acquisition and loyalty at the company, said, “Fidelity is committed to responsibly supporting young investors. Importantly, our goal for the Fidelity Youth Account is to encourage young Americans to learn through action and foster meaningful family conversations around financial topics. Designed alongside teens and parents, the account is charting a new course by providing the ability for teens to build healthy money habits through learning by doing.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.