Kids as young as 13 can now trade stocks without a parent’s approval — but don’t ask them, ‘How much did you make today?’
Schwab is the latest to offer a youth account that allows teens to make trading decisions without parental approval. Here’s a smart path for parents to take the training wheels off for their young investors.
As American teens become more exposed to personal-finance education and tech platforms make trading more accessible than ever, financial firms are finding new ways to reach young investors before they’re old enough to drive — including by handing over control of child brokerage accounts from parents to kids themselves.
The latest company to target adolescents is Charles Schwab
SCHW, which on Thursday launched a new “Teen Investor” account for 13- to 17-year-olds that is jointly owned by the child and their parent — but, unlike traditional custodial brokerage accounts, it is controlled by the teen. Kids get their own logins and can trade independently without parents approving their transactions, deposits or withdrawals.
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