When you ask teenagers to name their favorite shoe and apparel company, fast food restaurant, or cell phone retailer, brands like Nike, Chipotle, and T-Mobile are high on many lists.

But what is the favorite investment brand among teenagers? Loyalty wants to be the one.

This is a motive for the introduction of the new product “Youth Account” from Fidelity Investment. Jill Schlesinger previously mentioned the Fidelity Youth Account in her 31st column. Here’s a deeper look into the new product.

The Fidelity Youth Account is designed for teenagers between the ages of 13 and 17 and includes a mobile app with optimized money management functions and content for teenagers to save and invest in.

Fidelity has long promoted a wide variety of educational information for young investors on its website. And the investment giant has marketed its Roth IRAs and other investment products to a younger clientele. But the new youth account, launched after a test with families last month, is much more ambitious.

The Fidelity app can be used to trade stocks, exchange traded funds or mutual funds. The account comes with a debit card and can be linked to Venmo and PayPal apps for peer-to-peer payments.

To sign up, a teen only needs one parent with a Fidelity account who will keep an eye on their young investor (s) and be notified when a trade is placed or the debit card is swiped. But unlike other products on the market, parents cannot block transactions.

Teenagers have their own logins and passwords that parents cannot access. Likewise, teenagers cannot access their parents’ Fidelity account.

There are no trading commissions, no subscription fees, no account fees, no minimum investment requirements, and no domestic ATM fees.

The accounts enable fractional trading and give youngsters the opportunity to like less than a full share of stocks in popular companies. to buy Amazon.com and Microsoft, which are currently selling for hundreds or thousands of dollars.

How many children want to invest in the stock market? The stock market used to be a foreign land to high school children. But not anymore.

These standards make it imperative that parents and their young investors keep lines of communication open and talk about stock picking and other investment strategies.

Young investors flocked to the market during the pandemic, especially as Robinhood and other trading apps became the platforms of choice for buyers rocketing stocks of GameStop, AMC Entertainment, and other companies.

Fidelity has 26 million retail brokerage accounts, including many with teenagers. Investors opened 4.1 million new brokerage accounts in Fidelity in the last quarter, and 40% of those were opened by those under the age of 35.

Fidelity is promoting the Youth Account to teach teenagers about money management, setting investment goals for long term and other major financial education concepts. During the testing period, Fidelity said 90% of parents said they sat down with their teen and used the account as a classroom moment.

I am for anything that teaches teenagers how to use money responsibly, especially so many who don’t know much about the ways of Wall Street.

But make sure you’re comfortable with this wrinkle: when teenage investors turn 18, their teenage account will automatically switch to a Fidelity Standard Brokerage Account. So this product is more than just Investments 101, it is a bold move by Fidelity to build long-term customer relationships.