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These three practical steps worked for my family. This is how you can put them into practice for yours.
By
James Martielli, CFA®, CAIA®
published
24 March 2026
in Features
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How did you first get started with investing? My dad taught us kids by example. He opened custodial brokerage accounts, bought us stocks, regularly invested, and — most important held onto them.
It took me well into my adulthood to appreciate just how lucky — and unusual — it was to be taught sound investment principles at such a young age. My dad's influence shaped how I approach investing today.
Teens and investing
The good news is that teens are interested in investing. At Vanguard, we've seen a 56% increase in custodial brokerage accounts from 2020 to 2025.
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Sign upThe not-so-good news is that the lines between investing and gambling are blurred as never before. It's never been easier to speculate on a penny stock or the next men's college basketball winner — all from the same "brokerage" app. More often, short-term bets are long-term losers.
How can you teach teens the difference between gambling and investing? In our family, it starts with three simple steps.
About Adviser Intel
The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
1. Open an account in your child's name
I opened a custodial brokerage account for each of my children — but you can also open one for a niece, nephew or grandchild. Once the minor comes of age (typically from 18 to 21, depending on the state), the account transfers to them, and they gain full control.
In a Vanguard custodial brokerage account, families can access a broad lineup of investments, including mutual funds, stocks, bonds and ETFs (exchange-traded funds).
If education savings is your primary goal, opening a 529 account on behalf of your child might be a better fit. These state-sponsored plans offer investment line-ups with potential tax benefits.
Additionally, with Trump accounts set to launch in July, consider enrolling your child, as qualifying children might be eligible for free money from the government and/or other sources.
If you're not sure which type of account to open, resources such as Vanguard research can lend a hand.
2. Give the gift of investments
My sister is a buyer for a teen clothing store, so she's always on top of the latest fashions and often gives my kids merchandise samples. But when it comes to gifting for my kids' birthdays and milestones, "Zia" ("Aunt" in Italian) follows the family tradition our dad started: She gifts them investments.
A newborn outfit is adorable — but it will be outgrown quickly. Investment gifts endure. Over time, they tend to grow and create a lasting emotional connection.
According to Vanguard research, children who received investments as gifts reported feeling more like investors, more confident in their financial knowledge and more open to passing that knowledge on to future generations.
It's also easier than ever to get started. Many brokerages, including Vanguard, offer the ability to purchase ETFs for as little as $1 through fractional shares/dollar-based investing.
Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.
3. Teach them about investing
Vanguard's principles for investing success — set a goal, maintain balance, mind your costs and stay disciplined — provide a helpful framework for investors of any age.
I start by explaining to my kids that they have a long time horizon, which means they can afford to take more risk (set a goal).
I also show them that the stock ETFs they own hold thousands of companies (maintain balance and mind costs). Those companies make the phones they use, the clothes they wear and the shows they watch. That connection makes investing feel real.
We also talk about volatility. Stocks tend to grow over the long-term, but they don't move in a straight line. When markets fall, it doesn't necessarily mean it's time to sell. If your long-term goals haven't changed, your investments probably don't need to, either (stay disciplined).
Most important, keep these conversations a no judgment zone. Let teens ask questions. Starting these discussions early helps remove the stigma around talking about money and builds lasting confidence.
Leaving a legacy
Our dad passed away more than 20 years ago, but his legacy of sound investing habits lives on through my sister and me — and now through our children. Consider giving gifts of investments — and knowledge — to start your family's investing legacy today.
Related Content
- One Family's 529 Journey: A Guide to Smart College Savings, From a Parent Who's Also a Financial Professional
- I'm an Investment Professional: These Are the Three Money Tips I'm Giving My College Grad
- From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every Age
- 5 Tips to Get Your Kids Investing as Soon as Possible
- A Financial Planner's Tips for Teaching Kids About Wealth Without Creating Entitlement
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
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James Martielli, CFA®, CAIA®Head of Investment Product, Personal Investor, VanguardJames Martielli, CFA®, CAIA®, heads Investment Product, Personal Investor, which is responsible for designing and enhancing Vanguard's brokerage and investment product offer, amplifying distribution efforts and shaping the investment methodology that fuels unmatched investment and savings outcomes for our clients. Previously, James led Investment & Trading Services (ITS), which educates individual investors about Vanguard's products and provides trade execution for the securities and products on Vanguard's retail brokerage platform.