Advice needed - my 12 YO niece wants me to teach her investing. Her parents are supportive. Do I open a joint account with her or an account just in her name?

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That’s awesome! You can always make it joint to help her get set up and monitor for teaching purposes, and then remove yourself down the road. My parents are still joint on my checking account just out of laziness 🤷🏻‍♀️

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1st off - awesome niece to be so financially aware and conscious. She will have a better leg up on so many people in their 20s and 30s if she starts saving young. I agree that a joint account is fine, as long as you are there to monitor and make sure that the money is generally in a safe spot.

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Why not just open a paper account to start, learn the basics, and then move on to the real deal? If getting a real account, you will need to upon a custodial account where she takes control at 18 or 21 depending on her state. You don’t necessarily have to be the parent to be custodian of the account, but I’m sure there are forms that the parents have to sign giving you the appropriate authority. Need to be aware of gift tax implications if she doesn’t have any wages, income, etc. The funds can only be used for the benefit of the child, and they will count towards her FAFSA when applying for financial aid in college. The financial aid bar is also higher - they expect you to use 20% of assets in her name to pay for college vs. the <6% required by parents. Just some food for thought...great to get them started early though!

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