Investing for kids. Investing with teens. Learning for life.
Invest for your child's education.
Help pay for tuition or education expenses from kindergarten through college.
Help build long-term wealth for a child.
Make a financial gift to a child—whether your own, a relative's, or a friend's.
Teach investing by doing it together.
With your guidance and watchful eye, your teen can learn how markets move, how investments can grow over time, and how to focus on long-term goals to get a head start on their future.
More ways to engage your teen.
Engage and learn.
Courses
Quick start to stock investing.
Take our course designed to help you learn the basics of investing and how to research, buy, and manage a stock investment at Schwab. Clients can get started by logging in.
New to investing?
Get tips and insights to help you start investing today:
Start your family's investing journey.
Already a client?
Log in to open an account or use our educational resources.
New to Schwab?
Open an account to unlock the world of investing for your kids.
Common questions
There are numerous popular choices, and picking the right one will come down to your goal.
If you're saving for their education, you could consider:
- A 529 college savings account, which is a tax-advantaged education savings account where investments in the account can grow on a tax-deferred basis. If you don't spend all the money in the account, you may be able to roll over up to a $35,000 lifetime maximum from a 529 plan into a Roth IRA for the same beneficiary. Annual rollover amounts generally cannot exceed the Roth IRA contribution limit for that year. The 529 plan must have been open for at least 15 years, and contributions (and associated earnings) made within the last 5 years are typically not eligible. Additional eligibility rules apply.
- A Coverdell Education Savings Account (ESA), which offers similar tax advantages for education-related expenses but with more flexible investment options. These accounts have a contribution limit of $2,000 per year and income limits that phase out the ability to contribute.
If you're looking for a general investing or stock-trading account, you could consider:
- A custodial brokerage account, which is an investment account typically established for a child and managed by a custodian, such as a parent, until the child reaches the age of majority.
- A Schwab Teen Investor account, which is a taxable joint brokerage account for teens aged 13–17 and their parent or guardian.
If your child has earned income, you could consider:
- A custodial IRA, which is a retirement-savings and investment account that a custodian (typically a parent) opens and manages for the benefit of a minor.
You can open some investing accounts, like a custodial brokerage account or a 529 account, as soon as a child is born. In fact, with a 529 account, you could open one for yourself whenever you want and then name your child as a beneficiary once they're born and have a Social Security number.
Some investing accounts do have age-related or other restrictions:
- Custodial IRAs (traditional or Roth) have no minimum age requirements, but the child must have earned income.
- Opening a jointly held Schwab Teen Investor account has minimum age requirements—the child must be 13-17 years old.
The main difference is who has control over the account.
A custodial account is set up and managed by a custodian, who is an adult responsible for investing and disbursing assets for the benefit of the child. The child can't access the account until it is turned over to them when the custodianship terminates, per state law.
In contrast, a Schwab Teen Investor account allows a teenager to own a joint account with their parent or guardian. Teens can make investment decisions and manage their money in the account, while the parent or guardian is able to supervise and provide support.
If you're looking for more information about the different accounts you can use to invest both for and with your kids, read the parents' guide to investing with kids. Schwab Moneywise® also offers numerous age-appropriate educational resources that can help young investors learn how to budget, save, invest, manage debt, and achieve their life goals.
