However, starting to invest as a minor will carry different rules than someone who doesn’t start investing until later in life. Therefore, it’s important to understand how minors can legally invest and what qualifies as the best investments for teens.
How to Start Investing as a Teenager
If you are a minor, you can start investing, but it needs to be done with a custodial account. These are financial accounts an adult maintains for a child or another person under the age of majority.
This is enough money to buy a few shares of many popular index funds or individual stocks. If you choose to focus on investing in growth stocks, create a portfolio with a few shares of several of your favorite stocks, rather than spending it all on one stock.
To invest as a minor, you will need a trusted adult to set up an UGMA account, such as Acorns Early, or an UTMA account. The money in these custodial accounts belongs to you, but the adult will oversee any trades you want to do.