How to help your teen start to invest

Most adults wish they had started investing earlier. Once work, bills, and family take over, time becomes the one resource that cannot be replaced.

Many parents want their children to avoid the same regret, yet few know where to begin; investing can feel abstract to a teenager who measures life in weekends and holidays, rather than in decades.

Talking about the future with children doesn’t always work, but helping your child learn how to invest, even with small amounts, builds habits that compound over the years. Each contribution teaches them patience, foresight, and the link between effort and reward. With the proper structure, those lessons can shape how they think about money long before adulthood.

Can teens invest in the stock market?

Legally, most countries require a person to be at least 18 years old to enter a brokerage agreement and manage an account in their own name, although exact ages and conditions vary by country.

However, that doesn’t mean teens are locked out of the market. In many countries, the law allows adults (most often parents or guardians) to open and manage accounts on their behalf. The assets belong to the teen, but an adult manages them until the local age of majority (commonly 18 or 21, depending on the country and account type).

Opening an account for a teenager usually requires standard identity checks for both the parent and the child, in accordance with local regulations. The process typically involves identification for both the adult and the teen, proof of address, and source-of-funds information.

Additionally, there’s a growing number of learning platforms and apps designed for younger users. These let teens follow real market prices, create virtual portfolios, and understand how investments behave without risking real money. While these tools don’t replace real investing, they can build the knowledge and confidence needed once a real account becomes possible.

Since teens can’t yet open a brokerage account on their own in most countries, investing must be supervised by an adult. That’s where different account structures come in. Each one defines who controls the investments, how taxes are handled, and when the teen gains full ownership.

Depending on the country, common account options families can consider when starting to invest for a teen include:

Youth or junior investment accounts

These accounts allow a parent or guardian to manage investments on behalf of a minor until they reach the age of legal adulthood under local laws. The assets belong to the teen, but the adult handles all transactions, taxes, and withdrawals. Once the child turns 18 or 21 (depending on the country), full ownership is automatically transferred. Where available, these accounts are often flexible because they allow investments in stocks, ETFs, mutual funds, and bonds (subject to provider and local restrictions).

Tax-advantaged retirement accounts for minors

If a teen has earned income from part-time work or freelance jobs (pocket money, gifts and most investment income don’t qualify), families can open a retirement account in the teen’s name. For example, in the UK, a Junior SIPP allows contributions from parents or guardians within annual allowances. Contributions are made with after-tax money, but growth and qualifying withdrawals can be tax-free, subject to local rules. Similar retirement options for minors exist in other European countries, though they remain less common than standard youth investment accounts. Availability, allowances, and tax treatment vary by country.

Education-focused accounts

Some families invest with a clear academic goal in mind. In some countries, education-focused accounts offer tax advantages when the funds are used for approved educational expenses. They help parents and teens plan for tuition, housing, and other study-related expenses, but withdrawals for non-educational purposes typically incur penalties. Check local eligibility and limits.

Joint or parent-managed accounts

In some countries, families can open a shared or parent-managed investment account. The parent retains legal control, but the teen can follow performance, suggest trades, or take limited action under supervision. These accounts are often used for educational purposes, providing young people with hands-on experience while maintaining adult oversight. Availability and permissions differ widely by country and broker.