Custodial accounts, Roth IRAs, and getting started with investing before you're 18. The full playbook for teens who want a decade head start.
Minors can't legally open their own brokerage account. But a parent or guardian can open a custodial account in their name (your name, technically). They control it until you reach the 'age of majority' in your state — usually 18 or 21.
Two main types of custodial accounts:
If you have earned income (a real job with W-2 or self-employment that you can document), you qualify for a Roth IRA — and a custodial Roth is one of the best wealth-building tools that exists.
Key takeaway: You don't have to wait until 18 to invest. With a parent's help, you can open a custodial brokerage or Roth IRA at any age — and the head start is massive thanks to compounding.
Questions people ask
Can I open the account myself?
No, not until you reach the age of majority in your state. A parent or guardian must open a custodial account on your behalf.
Will having a custodial account hurt my financial aid?
Yes, slightly. Custodial accounts count as student assets, which are weighted heavily in aid calculations. A Roth IRA is treated more favorably than a UGMA/UTMA brokerage account.
What if I don't have earned income for a Roth IRA?
Then a regular custodial brokerage account is your option. Same investing power, just no Roth tax benefit. You can switch later when you have a job.
What can I invest in as a minor?
The same things any adult can — stocks, ETFs, index funds, bonds. The ownership structure is what differs, not the investments.
Does a Custodial Roth IRA transfer to a regular Roth at 18?
Yes. Most brokerages (Fidelity, Schwab, Vanguard) automatically convert it. You retain everything; the parent is no longer the custodian.
Can my parents take my custodial money?
Legally it's the minor's money, used only for the minor's benefit. Misuse is illegal. At age of majority, the teen has full control.