IRAs are tax-advantaged accounts that can be set up for retirement or educational purposes.
They have a different set of restrictions from custodial accounts. The truth is that your Teenvestor will need a little incentive from you to get going with an IRA even though you may think that the only incentive he needs is that it's for his own good. We'd like to suggest that you make the initial deposit in your Teenvestor's IRA account to get him started. You can also try a savings matching incentive program whereby you contribute more to an allowance, for example, if he conscientiously contributes money to the IRA from time to time. Do anything, including impounding a portion of cash gifts for relatives, to strongly encourage him to make contributions to an IRA, especially if he has no other investments.