Your guide on how to invest as a teenager

Learning how to invest as a teenager can give you a financial head start in life. You discover the power of long-term strategy and find out what happens when you sacrifice quick wins for future gains.

Teens under 18 need an adult’s participation to invest legally, and some families have to overcome the worry that the process is intimidating. But with teen-friendly guidance and age-appropriate investing tools like Greenlight, it’s easier than ever to start making investment decisions. Here are some tips on how to invest as a teenager.

Can teenagers invest in the stock market?

Investing under age 18 is possible, but a parent or guardian must be involved. A legal minor usually can’t open their own brokerage account. Parents must create a custodial account—a specialized account owned by the teen but managed by a parent or guardian until the teen reaches legal age.

There is no minimum age to start, but the best time to begin is as soon as a teen understands the difference between saving for later and spending now.

How to start investing with Greenlight

Greenlight bridges the gap between learning and doing by turning the complex world of the stock market into a shared family experience:

• Parent-managed setup: An adult opens the account, ensuring all legal requirements are met instantly.

• Teen-led research: Using the Greenlight app, teens can research stocks and ETFs to suggest their own trades.

• Parental approval: No trade happens without your green light. You’ll receive a notification to review and approve every move with a single tap.

By using these tools together, your teen gains hands-on experience and financial confidence while you maintain total peace of mind.

3 investing options that make sense for teens

If you’ve tried investing or looked at an investing website and gotten confused, you were probably on the wrong one. Many resources assume extensive knowledge of the stock market and offer little more than a list of available investment products.

That’s great for adults who have invested for years, but teens need more guidance. That’s where platforms like Greenlight come in. Greenlight’s interactive investing app lets teens and parents research companies and learn about different investing options, including:

• Stocks: This is a type of investment that lets you own a small — often very small — part of a company. When a company does well, your stock rises in price. You might even get a direct payment called a dividend.

• Exchange-traded funds (ETFs): A product that collects money from multiple investors and puts that money into a combination of stocks, bonds, and other investment options is an ETF.

• Index funds: This is an investment that goes up or down in value based on a market index, which tracks the performance of a particular stock category. Many index funds are ETFs, but there are other types as well.

Index funds and ETFs are helpful for teen investors because they automatically add diversity to your portfolio. Portfolio diversification means investing in a variety of stocks, bonds, or funds, so you don't lose all your money if one stock or industry loses value. It's a popular strategy investors use to reduce their overall risk. 

How parents can help teens invest safely

Experience is the best teacher, and when it comes to the stock market, a parent’s perspective is invaluable. Rather than a one-time “money lecture,” investing together creates an ongoing dialogue about goals, risk, and responsibility.

Here’s how parents can help support safe investing for teens:

• Set healthy boundaries: You can help your teen decide how much of their savings should be invested versus kept in a liquid “emergency fund,” teaching them the importance of a balanced portfolio.

• Discuss risk management: Teens have the advantage of time to recover from market dips, but parents help them understand the difference between a smart risk and a reckless gamble.

• Research stocks together: Instead of a one-off talk about money, Greenlight turns every trade into an ongoing conversation. Reviewing a teen’s suggested stocks together allows you to discuss the “why” behind their choices.

By involving yourself in the process, you aren’t just protecting their account—you’re ensuring they graduate into adulthood with the confidence to manage their own wealth responsibly.

Teach teens money skills for life

All kids and teens should learn about investing when they’re ready. It’s a financial literacy skill for teens that will benefit them at every stage of life, from their first days as traders to when they cash in their 401(k) or Roth IRA.

Teens can gain hands-on financial education that transforms the way they look at money:

• Investing is a long-term strategy: Teens shift their mindset from “get-rich-quick” schemes to understanding that building wealth is a lifelong process.

• The power of compounding: They see firsthand how reinvested earnings accelerate growth, proving that time is their most valuable asset.

• Risk assessment: Teens learn to distinguish between “gambling” on trendy stocks and making calculated, diversified choices that protect their savings.

Greenlight’s teen-friendly platform lets families start small and learn together. Parental guidance is built into every stage, so investing is approachable for every age. Check out Greenlight’s investing app today to learn more.

© 2025 Greenlight Investment Advisors, LLC (GIA), an SEC Registered Investment Advisor provides investment advisory services to its clients. Investing involves risk and may include the loss of capital. Investments are not FDIC-insured, are not a deposit, and may lose value.