<prompt> Human: My son has saved up 500 over the years that he wants to invest, probably in a low-cost passive index fund. My question is how best to do this. Ideally Id like to setup a separate account just for him rather than co-mingling his funds into my account, which might get messy from a tax, cost basis, etc. standpoint. I looked at the UGMAUTMA route, but those seem more geared towards adults giving kids the money, whereas were talking here about his money, not a gift from me. Also, I checked with Fidelity who I use, and they have a 2,500 minimum for their UGMA. ETrade, who I also use, doesnt seem to have a minimum, but Im still not sure a UGMA is the way to go when its his own money. Ive also read that the UGMA funds can hurt his financial aid support when its college time, but not sure how much thatll matter with only 500 today.Anyway, any thoughtssuggestions welcome.Thanks.  <response>: You can open a custodial account for him. UGMA is another option but theres nothing wrong with a simple brokerage account. How advanced is your sons understanding of the stock market and investments? If he knows a lot, then an index fund is fine. If not, then I recommend having him buy shares of companies he researches. IMO this is more hands on and fun which is good for someone learning. The goal here isnt to pick winners because no one can do that. But rather to understand what a stock is and represents and all that stuff. As he gets older and understands more, the switch to passive index funds can happen very easily. 