How to Open an Investment Account for a Grandchild

Opening an investment account for a grandchild is mostly straightforward — the main wrinkles are paperwork and coordinating with the parents. Here's exactly what to expect.

What you'll need

The grandchild's Social Security number, their basic details, and a way to fund the account. If you don't have the SSN — common for grandparents — you'll need to loop in the parents, since it's required to open a custodial or 529 account in the child's name.

Who controls the account

• UTMA (custodial): one person is the custodian who manages it until the child grows up. A grandparent can be the custodian, but many families have the parent serve as custodian while the grandparent funds it.
• 529 plan: the grandparent can own and control the account outright, naming the grandchild as beneficiary.

The five steps

1. Decide the account type — a 529 for education with your control, a UTMA for flexibility, or a custodial Roth if the grandchild has a job. (See the 529 vs. UTMA comparison if you're unsure.)
2. Pick a brokerage or 529 plan.
3. Open the account online — about 15 minutes with the child's information. The full walkthrough is in How to Open a Custodial Account.
4. Fund it, and ideally set up a small recurring contribution so it grows steadily.
5. Connect it so the family — and the grandchild — can watch it grow.

A note on family harmony

Because these accounts involve the child's information and sometimes the parents' role as custodian, a five-minute heads-up to the parents avoids surprises — and often turns the whole thing into a shared family effort rather than a solo surprise.

MemoryBank is an education and display tool that connects to the account you open — not a broker or a financial advisor. Confirm account and tax specifics with the provider or a professional.