When Should You Start Investing In Stocks?

When people ask when they should start investing in stocks, they’re usually trying to sort out a few things at once. What age is allowed. What age is expected. Whether starting late is a mistake. And whether they’ve already missed their chance.

It’s common to feel unsure about these things when it comes to investing in the market. This article is meant to clear up those basic questions without getting into complicated details that make investing feel overwhelming or easy to dismiss altogether.

Article highlights

• There’s a legal age to invest, but there isn’t one “right” age for everyone.
• If your job offers a 401(k), you should usually turn it on immediately.
• You shouldn’t invest until you can cover your bills and still have money left at the end of the month.
• Starting late is still far better than never starting.

What’s the legal age to start investing in stocks?

In the U.S., you generally need to be 18 to open your own investment account. That includes a standard brokerage account and retirement accounts like a Roth IRA or traditional IRA.

If you’re under 18, a parent or guardian can open a custodial investment account for you. Some brokerages offer custodial versions of popular apps, including options similar to Robinhood, where the adult owns and monitors the account until you’re legally an adult.

This can be a great way to get an early start, as long as it’s supervised. A lot of people make the mistake of treating investing like gambling, chasing quick wins, buying and selling randomly, and then wondering why “investing didn’t work.” If an adult is monitoring the account and you’re learning along the way, you can avoid a lot of those early, expensive mistakes.

Is there a “right” age to start investing?

There isn’t one perfect age that applies to everyone. The best time to start is as soon as you’re legally allowed and financially able. Earlier is better, but later is still worth it.

That said, there’s a big difference between wanting to invest and being ready to invest. If you can’t comfortably cover your bills and still have money left at the end of the month, you’re not really in a position to invest yet. You’re in a position to stabilize first. So you need to start paying off any debt you have and work towards making more money. This may mean looking for a higher paying job.

Before you invest, make sure you can actually afford to

This part matters more than age. You shouldn’t be investing money you’ll need for rent, groceries, utilities, gas, or any other bills that have to get paid no matter what. If your budget is so tight that one unexpected expense would blow everything up, investing should wait.

Ideally, you should also have at least a minimal emergency fund before you start dumping money into the market. It doesn’t have to be huge, but you should have some cash set aside for surprise expenses. Without that buffer, you’re more likely to panic-sell during a bad month or pull money out at the worst possible time.

When do people actually start investing?

In reality, most people don’t start at 18. Life happens. School, rent, debt, kids, and being in survival mode can push investing way down the list.

A lot of people start once they land a steady job, get access to a workplace plan, or simply reach a point where they’re tired of feeling stuck and want to understand what they “should” be doing with their money.

Is it ever too late to start investing?

No. It’s almost never too late. Starting late doesn’t mean starting wrong. It just means you start where you are and focus on consistency from here forward.

I started investing later than I wish I had. I was in my mid-30s when I really began taking it seriously. If I could go back, I’d start earlier, even with small amounts. I’ve tried to encourage my younger brother to start sooner than I did, but people don’t always want to hear it. Most people listen when they’re ready, not when they’re told.

My kids, though, will be investing from day one of being 18. I want them to have advantages I didn’t have, and I want them to never worry about money the way I did at times in life.

Different types of accounts and what you need to know

When you start investing, the type of account matters. Here’s a simple breakdown.

Account type	Who it’s for	What to know
Custodial account	Minors	A parent controls and monitors it until you’re an adult.
Standard brokerage account	Adults (usually 18+)	Flexible investing account. No retirement rules, but taxes can apply.
401(k)	People with a job that offers one	Comes from your employer and is taken pretax out of your paycheck. If your job offers it, you should usually turn it on immediately.
Roth IRA	Adults with earned income	You must have earned income to contribute. Great long-term account, but don’t fund it if you can’t cover bills and keep an emergency buffer.
Traditional IRA	Adults with earned income	Also requires earned income. Tax rules differ from Roth accounts.

So when should you start investing in stocks?

If your job offers a 401(k), that’s usually the easiest starting point. It’s taken pretax from your paycheck and often comes with employer perks like matching. In many cases, turning it on early is one of the best financial moves you can make. You may not even realize what companies you’re actually investing in without a little digging, many employers have pre-chosen plans.

Other than that, you should wait to invest until you can afford to. That means your bills are covered, you’ve got some money left at the end of the month, and you’ve got at least a minimal emergency fund so you aren’t forced to pull investments back out during a rough month.

The bottom line

You should start investing in stocks as soon as you’re legally allowed and financially able.

If you’re under 18, a parent can help you get started through a custodial account, and that can be a smart way to learn early as long as it’s monitored and you’re not making impulsive decisions. If you’re older, you haven’t missed the boat. Late is still better than never.

Just don’t skip the basics. If you can’t cover your bills and keep some emergency savings, investing in the market should wait. Once you can afford it, start simple, stay consistent, and give it time to work.