In this article:
Overview
A kids and teens account is a bare trust account you open and manage on behalf of your child. In a bare trust, you're the legal account holder and trustee (meaning you have full authority over the account), while your child is the beneficial owner of the funds in it.
Your child gets a Kids and Teens Visa* prepaid Visa card and a simplified in-app experience for everyday spending, while you stay in control with spending limits, category restrictions, and real-time notifications. See Manage card controls for a kids and teens account for the full list of card controls, and Fund and manage allowance for a kids and teens account for how money gets in and out.
Kids and teens accounts are only available through the Wealthsimple app. They're not available on a laptop or computer at this time.
Eligibility
To open a kids and teens account, you need to:
- Be an existing Wealthsimple client with an open chequing account
- Have completed identity verification
- Be opening the account for a child who hasn't reached the age of majority in their province (18 or 19 years old, depending on the province)
Each kids and teens account can only have one parent or guardian linked to it. You can link up to 10 kids and teens accounts to your profile.
Account ownership and taxes
As mentioned above, kids and teens accounts are structured as a bare trust. You're the trustee and legal account holder; your child is the beneficial owner of the funds. This means:
- Account statements are issued as "[Your Name] ITF [Child's Name]"
- Tax documents (T5) are issued as "[Your Name] ITF [Child's Name]"
- You have full authority to act on the account on your child's behalf, within the bounds of your duties as trustee
For more information about account ownership and taxes, see the frequently asked questions below.
How it works
A parent or legal guardian can open and own the kids and teens account. Your child is a beneficiary, not the legal account holder. During setup, you create your child's Wealthsimple identity by entering their name and date of birth, you're not required to set up a login for them at this stage. Once the account is open, you can add a login for your child whenever you're ready, so they can log in on their own device. They can then view their balance, see their transaction history, manage their card, and request money from you. For both login options, see Log in and access a kids and teens account.
What your child can do
- Log in on their own device, or access their account through the desktop web experience
- View their balance and transaction history
- Spend using their prepaid Visa card
- Freeze their card, view card details, and view or change their PIN
- Request money from you
- Manage personal settings like notifications and login
What you can do
- Open and manage your child's account and profile
- View your child's balance, transaction history, and upcoming transfers
- Send one-time transfers or set up a recurring allowance
- Approve or decline money requests from your child
- Manage all parental controls
- Lock or unlock your child's card and manage their PIN
Opening a kids and teens account
You can open a kids and teens account for your child directly from the Wealthsimple app:
- Log in to the Wealthsimple app
- From the Home tab, scroll down to your Accounts
- Tap the add (+) button
- Select Open a new account
- Scroll down and tap Kids and teens chequing
- Tap Open account
- Enter your child's name and date of birth
- Let us know what your child calls you
- Choose whether to order your child a card now, or skip this step for later
- If you order a card, follow the prompts to add a mailing address
- Review and accept the youth chequing agreements and tap Confirm
If you order a card, you'll also be prompted through a few optional steps: adding the card to Apple Wallet, personalizing the virtual card's icon, and setting up spend controls. If you skip card ordering, you'll go straight to naming the account and adding money.
Your child's account is now open, you don't need to set up a login for them right away. Whenever you're ready, you can add one; see Log in and access a kids and teens account for both options. To add a co-manager, see Manage your child's kids and teens account.
Frequently asked questions
Does my child need to go through identity verification?
No. Your child doesn't need to provide ID or complete any verification to open the account.
Can I add another parent or guardian to the account?
Yes. You can invite a co-manager to help manage your child's account with you, they don't even need to be your child's other legal parent or guardian. See Manage your child's kids and teens account for details.
Can my child contact Wealthsimple support directly?
No. Our support team can't assist children directly or take any action on a kids and teens account at your child's request. If your child has a question, they can visit the Wealthsimple Help Centre for self-serve information. For any account-related issue or request, including card issues, transfers, or account changes, you (the parent or guardian) will need to contact us directly.
Who pays tax on the interest earned in my child's account?
In most cases, where a parent or grandparent gifted the funds, attribution rules mean the interest is reported on the contributing adult's return; but if the account is funded by the child's own money (employment income, Canada Child Benefit, or an arm's-length gift) attribution doesn't apply and it's generally the child's to report. If you're still unsure about attribution rules, we advise you consult a tax professional.
Is the kids and teens account the same as a Registered Education Savings Plan (RESP)?
No, they're two different products. A kids and teens account is a chequing account with a prepaid Visa card for your child's everyday spending. An RESP is a registered savings account designed for long-term education savings, with access to government grants and tax-sheltered growth.
Can I use the kids and teens account to save for my child's education?
The kids and teens account isn't designed for education savings. It's a spending account with a prepaid card. If you're saving for your child's education, take a look at our RESP. You can hold both accounts at the same time.
Are kids and teens accounts eligible for Wealthsimple promotions, referral programs, or bonuses?
Not at this time. Kids and teens accounts aren't eligible for Wealthsimple promotions, referral programs, or bonuses.
What happens when my child turns the age of majority?
Nothing changes right away, your child can keep using their account and card as usual.
What if my child turns 18 in one province and then moves to a province where the age of majority is 19?
We base age eligibility on the province your child lived in when the account was opened. If your child transitioned to a full account at 18 in Ontario, that won't change if they later move to a province where the age of majority is 19.
What happens if I move to Quebec after opening a kids and teens account?
Your account stays open. You just won't be able to open a new kids and teens account.
What if my child moves to Quebec?
Your child's account stays open. You just won't be able to open a new kids and teens account for another child living in Quebec.
Can Wealthsimple close my child's account?
Yes. We may close a kids and teens account if our terms and conditions are breached, the account is misused, or if keeping it open isn't in your child's best interest. You can also close the account yourself at any time.
Related articles
- Manage your child's kids and teens account
- Log in and access a kids and teens account
- Fund and manage allowance for a kids and teens account
- Manage card controls for a kids and teens account
- Learn about the Wealthsimple chequing account interest rate
* Trademark of Visa Int., used under license.
Comments
0 comments
Article is closed for comments.