Students ask Christian McCaffrey about his first $1 million check
At Intuit’s Super Bowl Week Financial Literacy Forum, the 49ers star explained why he didn’t “even look at managing money” and instead focused on learning how to manage money.
If your teen is itching to invest in Nvidia or Nintendo, the new Schwab Teen Investor account might be just the thing for you.
The Teen Account, announced by investment firm Charles Schwab on March 26, is designed to be jointly owned by a teenager and their parent or guardian.
Previously, minor investors who wanted to own stocks typically had to use a custodial account opened and managed by their parents in the minor’s name.
With custodial accounts, “the child is really the passenger,” says Jonathan Craig, head of personal investing at Charles Schwab. “This is a true joint account, with children and parents having separate login credentials.”
Americans are investing at a younger age
Young Americans are increasingly interested in investing, and they are getting younger.
According to a 2024 Schwab study, the average Gen Z investor started investing at age 19, while the typical Millennial started investing at age 25 and Gen X at age 32.
“We found that Gen Z is definitely more engaged than previous generations at that age,” Craig said. It helps that investing has become “easier than ever and cheaper than ever,” he said.
Children born after 2010, the threshold of Generation Alpha, appear to be ready to start investing even earlier.
According to Schwab survey data, 70% of teens are enthusiastic about investing, and three-quarters of parents think it’s “very important” for their teens to learn how to invest.
With a national push to improve financial literacy, more states are teaching about money and investing in schools. Currently, 39 states require students to take a personal finance course before graduating from high school.
The federal government’s Trump Account program provides $1,000 in seed money to savings accounts, or newborn IRAs, for children born between 2025 and 2028. The Trump account is also available to minor children born before 2025, but does not include seed money.
Schwab’s Teen Account Offers Freedom, But Also Guardrails
Schwab’s teen account has no minimum initial deposit, no opening or maintenance fees, and no fees for online trading of publicly traded stocks. Teens can use their debit card to access the cash in their accounts and fund their accounts through direct deposit.
One Wall Street mantra advises investing in what you know. Not surprisingly, teenage investors are most interested in sectors with which they are familiar. According to Schwab’s research, the areas they are most concerned about are:
- Artificial Intelligence (34% of teens answered)
- Video games (28%)
- Social media (26%)
- Cryptocurrency and blockchain (26%)
- Food and drink (22%)
- Music (22%)
Schwab’s teen investors can pick their own stocks and choose investment themes, featuring stocks in areas such as online gaming and social networking.
Schwab provides teen investors with access to financial literacy videos and other resources, as well as 24/7 support from Schwab investment experts. Teens who complete a financial education course immediately after opening an account will receive a $50 fractional share from Schwab.
The account includes several guardrails. Teens will be able to freely trade stocks, bonds, and most ETFs and mutual funds. Teens will no longer have access to risky investments such as margin trading, options trading, and leveraged ETFs. They can buy shares in crypto ETFs, but not actual cryptocurrencies.
Parents have full access to their teen’s account and can “participate as much as they want,” Craig said.
Another option: Fidelity Youth Account
Teens who want their own investment account have at least one other option. It’s a Fidelity Youth Account.
A Fidelity Youth Account is a brokerage account owned by a teenager, rather than a joint account with a parent. This allows teens to invest in things like Fidelity mutual funds, most U.S. stocks, and some ETFs.
A parent or guardian opens a Fidelity Youth account on behalf of a teenager. To do this, you need an existing Fidelity account. Parents can then view statements and transactions and close their teen’s account at any time.
