What is the best investment account for a kid?

Since investors have diverse goals, it's impossible to unilaterally state which investment account is best for kids. Broadly speaking, those focused on education will be interested in 529 college savings plans and Coverdell ESAs, while investors with long-term goals in mind will find custodial Roth IRAs a better option.

Can I create an investment account for my child?

Yes, it's possible for parents to open investment accounts for their children. There are a variety of options to consider, so investors should research the topic thoroughly, keeping in mind the investment goals that they have for their kids.

How to invest $1,000 for a child?

Investors have to identify their individual goals before choosing the best sort of investment. A brokerage account is a good option for those seeking flexibility, while a custodial Roth IRA is a smart option for those looking to better position their kids for retirement.

What can a child invest in?

With the help of an adult who creates a custodial account or other type of account, kids can buy stocks, bonds, exchange-traded funds, and possibly choose other instruments.

Best Investment Accounts for Kids in 2026

By Scott Levine – Updated Sep 24, 2025 at 6:58 PM EST | Fact-checked by Parker Hicks

Key Points

Investing early for kids can build significant future wealth via accounts like 529 plans or Custodial IRAs.
Educational investment accounts, such as 529 plans or Coverdell ESAs, offer tax advantages for future college costs.
Flexible options like brokerage or UGMA/UTMA accounts allow investment in stocks and bonds without contribution caps.

With so many daily expenses to consider, setting up investment accounts for minors may not be a priority for most parents and guardians. But ask successful investors what they would do differently if they had the chance, and you'll often hear the same thing: I would start investing earlier.

Planting the seeds of investments early in life provides one of the greatest opportunities to grow sizable future wealth. So with time on your side, let's take a look at the best investment accounts for kids, how to open accounts for minors, the benefits of investing for kids, and whether you should start investing for kids now.

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An infographic showing the four best types of investment accounts for kids. — Image source: The Motley Fool.

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A kid and their dog selling lemonade at a homemade lemonade stand. — Image source: Getty Images.

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For example, if a kid/teenager earns $1,000 walking a dog in a given year, he or she can keep his earnings, and Mom or Dad can fund the Roth IRA up to $1,000.

Many brokerages offer the opportunity to open a custodial Roth IRA. Once you decide where to open the account, you must provide information such as Social Security numbers, employer details, and driver's license information, if applicable.

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Best Investment Accounts for Kids FAQs

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About the Author

Scott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.

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Charles Schwab is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short December 2025 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.

Best Investment Accounts for Kids in 2026

Key Points

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Is College Worth the Cost? Uncovering the Value of Higher Education

Roth IRA vs. 529 Plan for Education Savings

Best Investment Accounts for Kids FAQs

About the Author

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Stocks Mentioned

Premium Investing Services

A Complete Guide to College Savings Accounts in 2026

Investment Guide for Teens & Parents with Teens

Is College Worth the Cost? Uncovering the Value of Higher Education

Roth IRA vs. 529 Plan for Education Savings

Best Investment Accounts for Kids FAQs

What is the best investment account for a kid?

Can I create an investment account for my child?

How to invest $1,000 for a child?

What can a child invest in?

Top investment accounts for kids

1. 529 College Savings Plan

2. Coverdell Education Savings Account

4. UGMA/UTMA accounts

5. Custodial Roth IRA

How to open an investment account for minors

Benefits of investing for kids

1. It sets kids up for future investing success

2. It takes advantage of time to build wealth

3. It's fun!

Related investing topics

Should you start investing for your child?

FAQs

3. Brokerage account