MW Kids as young as 13 can now trade stocks without a parent's approval. How to be smart about it, according to experts.
By Venessa Wong
One tip: Don't ask teen investors, 'How much did you make today?'
New accounts give teens their own logins so they can trade independently without parents approving their transactions, deposits or withdrawals.
As American teens become more exposed to personal-finance education and tech platforms make trading more accessible than ever, financial firms are finding new ways to reach young investors before they're old enough to drive - including by handing over control of child brokerage accounts from parents to kids themselves.
The latest company to target adolescents is Charles Schwab $(SCHW)$, which on Thursday launched a new "Teen Investor" account for 13- to 17-year-olds that is jointly owned by the child and their parent - but, unlike traditional custodial brokerage accounts, it is controlled by the teen. Kids get their own logins and can trade independently without parents approving their transactions, deposits or withdrawals.
The new account is Schwab's answer to widespread interest in investing among teens, with a 2025 survey by the company finding that 70% of teens were very or extremely interested in investing. Many teens see the financial markets playing a major role in building a comfortable life as the unemployment rate for young people increases and AI reshapes the labor market for college-educated workers, MarketWatch previously reported.
"One of the keys to investing success, certainly, is getting started early," Jonathan Craig, head of retail investing at Charles Schwab, told MarketWatch. The other key, in Craig's view, is to actually practice doing it.
Read more: Teens turn to investing to build a new path to the American dream. 'My goal is to live comfortably.'
The growing youth investing landscape is creating new options for parents to consider. "The key consideration for parents is balancing education with appropriate supervision," said Christine Tobin, chief operating officer at the Young Investors Society, a nonprofit that works with schools to introduce students to investing.
"For younger or beginner investors, having parental visibility or approval can be helpful in guiding decision making and reinforcing good habits," Tobin said. "As students gain more knowledge and confidence, gradually increasing their autonomy can be a valuable part of the learning process."
Schwab is not the only firm now offering children as young as 13 greater autonomy over their investments - a change that they believe can give kids a better head start in building good habits. The new Teen Investor accounts are intended to be a next step after conventional custodial accounts, which are designed to be managed by parents through a parent's login and may show any other accounts the parent owns. They also are unlike kid-friendly apps such as Greenlight, which require parental approval of trades.
Fidelity launched teen-controlled accounts in 2021 for kids ages 13 to 17. While a parent must open the account and can view their teen's investments, balances and account activity, they cannot transact or withdraw from it. The number of these "Fidelity Youth" accounts increased 214% from 2022 to 2025, according to the company.
Meanwhile, the youth-oriented fintech Step - which was recently acquired by YouTuber Jimmy Donaldson (aka MrBeast) and his company, Beast Industries - began allowing teens to invest through its app in 2023. While parents set up trading guardrails by selecting a risk profile on the account, they do not approve their child's every transaction. Step did not respond to requests for comment from MarketWatch.
Sen. Elizabeth Warren, a Massachusetts Democrat, this week raised concerns about MrBeast's acquisition of Step, in part because the app had previously allowed teens to trade crypto and "encouraged risky investments," Warren said, and because of its partnership with a bank with a troubled history.
'As students gain more knowledge and confidence, gradually increasing their autonomy can be a valuable part of the learning process.'Christine Tobin, Young Investors Society
Families looking to help their kids take advantage of time in the market, save for future expenses and build a financial foundation typically start with a custodial account, a 529 college savings plan or a Roth IRA for kids who work, Ken Hevert, head of self-directed investing at Fidelity Investments, told MarketWatch.
Fidelity's youth account "allows [kids] to take a more active role in managing and investing their money, while parents retain visibility and certain controls," Hevert said. "This structure supports hands-on learning and helps teens build confidence, financial literacy and responsible investing habits before adulthood."
Schwab's Craig said he opened custodial brokerage accounts for his own children when they were minors and discussed investment decisions with them, but he wishes they had participated more in the process. "I was in control of the money," he said. "Whoever actually clicks 'trade' is very much more involved."
By letting kids practice investing on their own as early as age 13 - "logging into their account, tracking it, researching, moving money, buying and selling, seeing the power of up markets and down markets - you're really setting them up, at 18, for a lifelong understanding of the power of investing," Craig added.
Related: Teens from upper-income families are far more likely to work summer jobs than poor teens. What's going on?
How to train your teen
With more options now to put kids in the driver's seat, parents must consider how much agency they want their financially curious teens to have with minimal supervision, and how to educate them about the role investing plays in building wealth.
"The best account structure depends on the student's experience level and the parent's comfort, but the most important factor is that investing becomes a shared learning experience," said Tobin from the Young Investors Society. Her group partners with Webull to offer students custodial brokerage accounts, allowing their parents to maintain oversight while students learn how investing works in a real-world setting, she said.
Platforms should also guide teens into diversified portfolios "so they can focus on the habit of investing, not the stress of speculation," Acorns CEO Noah Kerner told MarketWatch. Acorns offers custodial brokerage accounts and matches 1% on up to $7,000 in deposits per year.
Over time, parental control of investments should evolve into coaching, Kerner said, noting that three fundamental rules of investing are to start early and use time as an advantage, to stay diversified, and to invest consistently.
More on investing for kids: Investing $1,544 for your baby can help them retire with $1 million, financial pros say. Could it be that simple?
"If you can shift the conversation from 'How much did you make today?' to 'How long can you stay the course?' you're giving them something better than supervision. You're giving them a mindset for wealth creation," Kerner said.
Greenlight, meanwhile, allows children to engage with investing through a standard brokerage account under a parent's name. The parent approves all trades through the app, and the portfolio does not automatically transfer when a child comes of age.
"This structure ensures parents stay in the driver's seat during the learning years, while giving kids real, hands-on experience that prepares them for financial independence," Jennifer Seitz, Greenlight's director of education, told MarketWatch. Kids can start by investing small sums, such as an allowance or birthday gift; as they demonstrate responsibility or start earning money at a job, parents can "consider letting them invest larger amounts or use their earnings to save for something meaningful," she added.
Parents should also keep in mind that, even if teen investing accounts feature educational tools and live coaching, and exclude higher-risk or complex investments such as options, futures or margin trading, young people are increasingly exposed to online gambling and get-rich-quick schemes.
"It's critically important for teens to understand investing can be fun," Craig said. "But it's not a game. It's real."
What personal-finance issues would you like to see covered in MarketWatch? We would like to hear from readers about their financial decisions and money-related questions. You can write to us at readerstories@marketwatch.com. A reporter may be in touch to learn more. MarketWatch will not attribute your answers to you by name without your permission.
-Venessa Wong
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 27, 2026 10:04 ET (14:04 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments