Investing for a 12-Year-Old
At age 12, most children lack earned income and are not Roth IRA eligible. UGMA/UTMA accounts remain appropriate with a high equity allocation. A 529 education account has a 6-year horizon to typical college entry, and age-based portfolios are generally moving toward a moderate allocation at this stage. Middle school marks a good point for families to introduce financial concepts and review account structures. The teen years guide covers the full investment strategy for ages 10-19.