Investing for a 16-Year-Old

At age 16, formal employment is common and Roth IRA contributions are straightforward when W-2 income is documented. The custodial Roth IRA contribution limit for 2026 is the lesser of earned income for the year or $7,000. The 529 education account has a 2-year horizon to typical college entry; the allocation should be reviewed and shifted toward stable assets if not already done automatically. The teens cluster covers accounts, risk capacity, automation, and annual review checklists for ages 13-17.

Full guide: Investing in the Teen Years | Teens cluster: accounts, priorities and decisions for ages 13-17