Investing questions to ask for teens

Teens 13–17 · Q&A · Updated October 1, 2026 · LearnLife Editorial

What questions should teens ask about opening an investment account?

Before opening an investment account, teens need to ask about account types, ownership, and requirements. Since most brokers require account holders to be 18 or older, teens usually open custodial accounts, which parents or guardians manage until the teen reaches the age of majority (often 18 or 21, depending on state law).

Important questions include:

• “What types of accounts do you offer for minors?” Confirm if custodial accounts are available and how they work.
• “What documents are needed to open the account?” Typically, you need a Social Security number for both the teen and the parent, proof of identity, and an address.
• “Is there a minimum deposit to open the account?” For example, some brokers let teens start with as little as $5, while others may require $100 or more.
• “Who controls the account before I reach legal age?” Usually, the adult custodian manages the account until you reach the age specified by your state.
• “Are there fees just to open or maintain the account?” Ask about monthly charges or inactivity fees.
• “How long will it take to open the account and start investing?” This helps plan your first steps.

Example wording for a call or email: “Hello, I’m interested in opening a custodial investment account for my child. What documents and minimum deposit are required? Also, who will control the account until my child turns 18 (or 21)?”

Parents and teens should review the broker’s website or customer service FAQs for detailed info. Each brokerage may have different requirements, so checking early saves time.

What should teens ask about choosing investments?

Choosing investments requires understanding options, risks, and how they match your goals. Teens should ask:

• “What types of investments can I buy?” Common choices include stocks, bonds, mutual funds, exchange-traded funds (ETFs), and fractional shares.
• “What are the risks and potential returns?” Stocks can grow faster but are more volatile; bonds tend to be safer but with lower returns.
• “Do you have beginner-friendly investments?” Many brokers offer low-cost index funds or ETFs designed for new investors.
• “Can I buy fractional shares?” This lets you invest small amounts in expensive stocks, like buying $10 worth of a $200 stock.
• “How do I build a diversified portfolio?” Diversification reduces risk by spreading investments across different types of assets.

For example, if investing $50 monthly, a teen might ask: “Is it better to buy fractional shares of several companies or invest in an ETF that covers many stocks?”

Teens should also ask about automatic investing options, such as setting up recurring deposits, which can help build wealth steadily.

Using educational resources from brokers and trusted sites can help teens learn about investment types and strategies. Starting with diversified, low-cost ETFs is often recommended to balance growth and risk.

What taxes and legal rules affect teen investing?

Taxes and legal rules are important for teens to understand. Key questions include:

• “Will I owe taxes on dividends or profits?” Investment income is generally taxable, but exact amounts depend on total income and filing status.
• “How do I report investment income?” Teens who earn enough may have to file tax returns; parents may claim them as dependents.
• “What forms will I receive?” Brokers send Form 1099 to report dividends and sales.
• “Does the kiddie tax apply to me?” This special tax rule affects children under 19 (or full-time students under 24), taxing some investment income at the parents’ tax rate.
• “At what age can I trade without parental permission?” Usually at 18, but this varies by state.
• “What state laws should I be aware of?” Custodial account rules and age of majority depend on state law, so check local regulations or consult a financial advisor.

Example questions for professionals or tax help: “Do I have to pay taxes on the dividends my investments earn this year?” or “When can I legally manage my investment account without a custodian?”

Parents and teens should review IRS resources, such as IRS Publication 550, and state laws for precise guidance.

How can teens track and manage investments well?

Good investment habits start with regular monitoring and education. Teens should ask:

• “What tools can I use to track my portfolio?” Many brokers offer apps and websites showing current value, gains, and losses.
• “How often should I review my investments?” Monthly or quarterly reviews help avoid emotional decisions based on daily market changes.
• “What should I do if a stock or fund drops in value?” Learning to “hold” during downturns and avoiding panic selling is key.
• “Can I set alerts for price changes or dividends?” Notifications help stay informed without constant checking.
• “Do you provide educational content or coaching?” Some brokers offer webinars, videos, or articles geared toward teens.

For example, a teen might ask customer service: “Can you show me how to set up price alerts on your app?” or “What’s a simple way to track how much my investments have grown over the last six months?”

Parents or teachers can help teens review account statements and set goals like saving for college, a car, or other expenses. Developing discipline and patience early improves long-term success.

What fees and costs should teens ask about before investing?

Fees reduce how much money grows over time, so teens should be clear on costs. Ask:

• “Are there commissions for buying or selling?” Many brokers now offer commission-free trades, but confirm.
• “Are there monthly or annual account fees?” Some accounts charge maintenance fees, waived if minimum balances are met.
• “Is there a minimum balance to avoid fees?” For example, accounts may waive fees if balance stays above $500.
• “Are there fees for transferring or closing accounts?” Moving your investments to another broker may involve charges.
• “What are the expense ratios on mutual funds or ETFs?” These are annual fees deducted from fund returns, typically 0.05% to 0.5%.

Example: “If I invest $20 weekly, will fees take a big part of my money?” or “Can you explain all the fees I might pay with this account?”

Choosing a broker with low or no fees is important for small or starting investors. Teens should request a clear fee schedule and ask questions before opening an account.

Where can teens find trustworthy investing information and support?

Reliable info and help build confidence and reduce mistakes. Teens should ask:

• “What educational resources do you offer for new teen investors?” Look for videos, articles, and interactive tools.
• “Are there special accounts or programs with extra guidance?” Some brokers have teen-focused investing apps or programs.
• “Can I speak with a financial advisor or counselor?” Some brokers offer free or low-cost advice.
• “What government or nonprofit resources do you recommend?” Trusted sources include Investor.gov, MyMoney.gov, and FINRA.org.
• “Are there beginner-friendly investing books or apps?” Avoid sources promising quick profits or overly complicated strategies.

Example question: “Where can I learn more about investing basics safely?” or “Who can I ask for help if I don’t understand something about investing?”

Parents, teachers, or school programs can also support teens in learning to invest responsibly.

How do investing rules and opportunities differ for teens versus adults?

Knowing the differences helps teens plan their investing journey. Key questions:

• “At what age can I open an account without a custodian?” Usually 18, but this varies by state.
• “Can I open retirement accounts like IRAs as a teen?” Custodial IRAs are available if teens have earned income, but rules vary.
• “When do I get full control of my investments?” Custodial accounts transfer control at the age of majority (18 or 21 depending on state).
• “Are there restrictions on trading certain types of investments?” Teens generally cannot trade complex assets like options or margin accounts.
• “How do investing options expand when I become an adult?” More account types and investment choices become available.

Example questions: “Will I have full control of my account when I turn 18?” or “Can I start a Roth IRA now with my summer job earnings?”

Parents and teens should review state laws and brokerage policies together to plan for these transitions.

Frequently asked questions

Can teens invest with only $10?

Yes, many brokers allow investing small amounts through fractional shares. However, custodial accounts may have minimum deposit requirements, so check broker rules before starting.

Do teens need parental permission to invest?

Yes, minors typically need a custodial account managed by a parent or guardian until they reach the legal age of majority.

What happens if my investments lose money?

Investment losses are normal. Avoid panic selling and focus on long-term goals. Discuss concerns with trusted adults or financial advisors.

Are investment earnings taxed differently for teens?

Investment income may be taxed, sometimes at the parents’ rate under the kiddie tax rule. Filing requirements vary, so consult IRS resources or a tax professional.

Can teens use investing apps on their own?

Many apps allow teen investing with parental consent through custodial accounts. Always check age limits and use adult supervision for safety.

What fees should teens watch out for?

Common fees include trading commissions, account maintenance fees, fund expense ratios, and inactivity fees. Choosing low-cost brokers preserves more investment gains.