Trump Accounts Prompt Parents to Start Saving Early for Their Kids

On a recent June morning, Savannah McConneaughey, age 7, joined three other children at Kellogg’s Diner in Brooklyn to discuss their investment portfolios.“I’m saving for new clothes, new shoes, toys and maybe —” she paused to think, “a mansion.”Next to her, 12-year-old Naima McElroy lamented the financial habits of her peers.

A lot of her classmates have trouble saving, she said, because they spend all their money on Robux (the currency used in the online game Roblox), NeeDohs (squishy toys) and Squishmallows (other squishy toys).“It’s harder to make good money decisions because of the internet,” she said with a sigh.Savannah agreed.

“Like, you can spend your money on stuff that you want, but don’t spend all your money on stuff that you want.”Over waffles, pancakes and orange juice, the young investors had gathered at the behest of Acorns Early, a child-friendly spinoff from Acorns, a savings and investment app.Known primarily for enabling users to invest their spare change (Acorns will automatically round up transactions to the nearest dollar and invest the difference), the company joins the many investing platforms — like Robinhood, Schwab, Vanguard and Fidelity — that are rushing to cater to a growing group of new customers: children.

Acorns has even recruited its own “kid advisory board,” which includes Savannah and Naima, to review the app’s features.Opening an investment account for a child used to be something only wealthy parents did, often with the help of a financial adviser.But over the past decade or so, the rise of retail investing has given pretty much anyone the ability to invest small amounts via easy-to-use apps and websites.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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