When my oldest daughter got her first job, she came home with a big smile and a small paycheck. We didn’t just take her to the mall. We opened a Fidelity Youth® Account.
That small decision turned out to be one of the best money lessons I’ve ever helped teach. She gained more than just a debit card—she gained awareness, confidence, and control. And I got a front-row seat to watch her start building wealth for herself, not someone else.
Here’s how it worked—and why I think every parent should consider it.
Why Financial Education Should Start Before Adulthood
Most schools still don’t teach basic financial literacy. But by the time kids turn 18, they’re bombarded with credit card offers, social pressure to spend, and the illusion that borrowing is normal.
What they really need are early wins:
- Seeing their paycheck hit their own account
- Watching savings grow
- Understanding what it feels like to spend their own money
- Getting to make small mistakes—without big consequences
A Fidelity Youth Account makes that possible. It’s a brokerage account designed for teens (ages 13–17) that includes:
- A free debit card with automatic ATM fee reimbursement
- No account fees or minimums
- The ability to invest in stocks, ETFs, mutual funds, and Treasuries
- Real-time parent visibility and control
In other words, it’s the perfect financial training ground.
The Real Benefits (from a Parent Who’s Seen It Work)
1. Smarter Spending Through Ownership
Once her paycheck landed in her own account, something shifted.
Suddenly, $40 for a hoodie wasn’t just a number—it was almost five hours of work.
We gave her choices:
“You can buy that if you want—but it’ll come from your account.”
More often than not, she paused. And that pause is where the learning happened.
She wasn’t just spending money. She was making trade-offs—and learning to say no to herself.
2. Freedom Without the Parent Wallet
The debit card gave her independence. She could go out with friends, grab food, or chip in for a group activity—without asking us for cash or awkward IOUs.
And thanks to ATM reimbursement, she wasn’t penalized for needing to pull out $20 here or there. Small perks, but big confidence boosters.
3. Seeing Money Work—Not Just Working for Money
We didn’t rush to have her buy stocks or ETFs. But something clicked when she noticed that at the end of each month, interest was being added to her account. She hadn’t done anything that month except keep the money there—and yet her balance grew.
That moment introduced a powerful concept:
Money can work for you—even when you’re not working.
It wasn’t a huge sum. But it was real. And for a teen, even a few dollars of passive income makes the idea of saving and investing feel tangible.
The Fidelity Youth Account includes full investing tools—so when she’s ready, she can buy ETFs, mutual funds, individual stocks, or even Treasury bills.
But we started simple:
- Earn money
- Save some
- Watch it grow
It’s about building the mindset first. Ownership, not just consumption. Growth, not just grind.
💡 Curious what happens when money just sits still? Read Why Cash Loses to Inflation Over Time to see how even small returns can help your teen stay ahead of rising prices.
💡 Want more tools to help your kids (or yourself) build wealth? Here’s how to start investing with just $100.
4. Parent Involvement Without Micromanaging
As a parent, I can transfer funds instantly, view transactions, and help guide decisions—but the account is hers. That ownership matters. She logs in. She moves money. She tracks her balance.
It’s not theoretical. It’s hers.
Why We Said “No Thanks” to Credit Cards (for Now)
One of my favorite moments came when she asked:
“Why would I get a credit card, spend money I don’t have, then rush to pay it off before they hit me with interest? Why not just use my debit card?”
That insight alone was worth the whole setup.
Here’s the truth:
Credit cards are businesses, not favors. And their profit model is simple—get people to spend more than they have, then charge interest as a penalty.
Even if you use them “right,” it’s extra work. You swipe, you track, you pay. One missed payment and you’re handing over 20%+ to a corporation that builds wealth off your income. Instead – Use your income to build your wealth.
Debit cards simplify life:
- You spend only what you’ve earned.
- No bills later.
- No temptation to carry a balance.
Let teens start there. Let them build strong habits before they build credit.
How to Set Up a Fidelity Youth Account
It’s easy:
- Your teen must be 13–17
- You (the parent) open a Fidelity account first if you don’t have one
- Apply online in about 10 minutes
- Link your bank and fund the account
- Your teen gets access to the Fidelity app, the debit card, and full investing tools
Once it’s live, you can:
- Transfer money in seconds
- Get notified of transactions
- Set expectations (“X% to save, Y% to invest, Z% to spend”)
- Review spending habits together each month
Final Thoughts: Wealth Building Starts Early
Kids don’t need lectures. They need tools, habits, and a safe place to learn.
The Fidelity Youth Account gave my daughter all three. She’s now more aware of what things cost, more confident in managing her money, and more invested in her financial future—mentally and emotionally, even if she hasn’t bought her first stock yet.
💡 Want to see how good habits today affect big financial decisions tomorrow? Read What Buying a Home Really Does for Your Wealth to see how ownership, inflation, and real returns come together later in life.
If you want to help your teen:
- Build confidence
- Learn real-world money skills
- Avoid early debt traps
- And maybe even develop a lifelong investing mindset…
This is a great place to start.
Want to Try It?
👉 Learn more about the Fidelity Youth Account here
(That’s not an affiliate link—just a recommendation from one parent to another.)
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Let’s raise the next generation of money-savvy adults—one paycheck at a time.
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