The White House’s new Trump Accounts initiative, which provides investment account funding for children, has shone a light on a long-overlooked household issue: young Americans' involvement in the stock market.
Traditionally, most heads of household took full responsibility for their kids' financial journey. That journey was primarily limited to a regular allowance, long-term college planning accounts, and bank accounts funded by household chores and family gifting on birthdays and graduations.
Now, the landscape has shifted, with more kids getting directly involved in the financial markets, and mom and dad acting as supportive account stewards.
A case in point. According to Greenlight, an Atlanta-based family money and financial safety company, its platform holds $2 billion in family investing assets with over 6.5 million families “earning, saving, and investing. According to the company, Greenlight kids and teens invested more than $70 million in 2025 (up 65 percent year over year), doubled their recurring automated investments, and increased their average buy trade to $49.56 (up from $39.70 in 2024).
“When I was 15, I started learning how to invest, and I became a better and better investor over time,” said Tim Sheehan, co-founder and CEO of Greenlight, in a statement.“Learning to be a smart investor - like Warren Buffett and Peter Lynch - is how to build true wealth. Despite economic headwinds, we’re encouraged to see parents, young adults, and kids move away from impulse spending and trend splurging to intentional earning, saving, and investing.”
3 Ways to Get Your Kids Into the Stock Market
Steering kids into the stock market in a practical way, with guardrails established, has never been easier thanks to digital investing and old-fashioned Wall Street investment tenets. Use these tips to start your child’s long-term market journey.
Use an index fund
The best family starter investment strategies are framed by simplicity and diversity. “You can’t beat index funds with low fees,” Matthew Weinschenk, CFA, director of research at Stansberry Research, told NTD. “A simple allocation can compound at near double-digit rates. Watching that for a few years will teach your children a valuable lesson about compounding interest.
Set aside some cash for direct investing
For older children who want an active role, setting aside a small amount of “play money” can help them learn about financial markets. “Doing so will get them active in understanding the economy and how it affects them,” Weinschenk noted. “Even losing a few hundred dollars to learn a lesson in risk is effective at that age, and is better than larger losses later in life.”
Leverage a custodial account
One solid way for parents to get their kids to start investing in the financial market is to open a custodial investing account for their child.
“A custodial account allows the parent to manage the account for their child, and once the child reaches the age of majority (usually 18), the funds transfer to the child,” Annete Harris, owner and financial counselor at Harris Financial Coaching in Jacksonville, Florida, told NTD News.
Along the way, parents can educate the child on investing in stocks, mutual funds, ETFs, stock splits, and more as the account is funded throughout the child's lifetime. “This can ensure their child is comfortable managing their account and is educated about the different ways they can invest,” Harris noted.
Work With a Trusted Financial Adviser
Parents don’t have to go it alone when building an investing experience for their kids.
“Parents should definitely talk to a financial advisor or a brokerage firm to ensure they understand the financial markets and the advantages and disadvantages of investing,” Harris said. “Understanding a child and a family’s risk profile and the ebbs and flows of the market will ensure they’re prepared for the outcomes of investing, including the potential to lose or gain money.”
The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.