How Teen Creators in the USA Can Protect Their Earnings from Parents

Introduction

You’re 15, your videos are taking off, and brands are sending messages. This is exciting, but there’s a question few teens think about early enough: who actually controls the money you earn?

Most parents handle this fairly and use the money to support their kids. But the system is built in a way that can leave teens exposed. Platforms often send the money to a parent’s account, and in many states the law still doesn’t clearly protect a minor’s earnings. This guide explains how it works and what you can do, in simple language.

This article is for information only and is not legal or financial advice. Laws differ by state and change often.

Why Teen Creators Are at Risk

1. Platforms often pay the parent, not you

On YouTube, you must be 18 to have your own AdSense account. Under-18 creators can only monetize by linking their channel to an approved AdSense account belonging to a parent or guardian over 18. That means the money legally lands in an adult’s account first. Other monetization programs and many brand deal platforms have similar age rules.

2. In many places, the law is still thin

Reports suggest that in most US states, parents can still legally keep all of a child influencer’s earnings. The history matters here. The famous Coogan Law exists because child actor Jackie Coogan sued his mother and former manager over his earnings. Social media is now creating the same problem in a new form.

3. Many new laws protect kids featured in content, not always teens running their own channel

This is the most important point for 14-17 year olds. Many laws were written for “family vlogging,” where parents post videos of their children. Some of them exclude minors who produce their own content. For example, Illinois’s law does not apply when a minor produces their own vlogs. California’s SB 764 has a similar carve-out, since its definition of “vlogger” does not include a person under 18 who produces their own content.

So if you run your own channel, you may need to take extra steps yourself, which the rest of this guide covers.

State-by-State Snapshot: Laws That Matter to Teen Creators

Dozens of states are looking at this issue. Sixteen states introduced bills in 2025 requiring part of a minor creator’s earnings to go into a trust account. Here are the states with notable laws so far.

California: strongest option if brands hire you directly

• AB 1880 brings content creators under the Coogan Law. When a brand or business directly contracts a minor as a content creator, 15% of the minor’s gross earnings must go into a Coogan trust account. The law covers creators who have a direct contractual relationship with third parties.

• SB 764 (effective January 1, 2025) covers minors featured in someone else’s content. It applies when minors appear in at least 30% of a creator’s content, and requires a share of earnings to go into a trust the minor can access as an adult.

• Once money is in a Coogan account, no one can touch it until you turn 18.

Minnesota: very relevant for ages 14-17

Minnesota’s law took effect July 1, 2025. It states that minors aged 14 to 18 can produce their own content and are entitled to the profits. Children under 14 are barred from content creation work. The law also lets a minor, or an adult who appeared as a minor, sue for damages if the law is violated. Creators must also delete content featuring a minor if the minor, or the adult they’ve become, requests removal.

Illinois: the first state to act

Illinois’s law took effect July 1, 2024 and targets family vloggers who feature minors under 16. Minors can sue for actual damages, punitive damages, and attorney’s fees if the required trust isn’t set up. If you’re 14 or 15 and appear in a parent’s or relative’s paid content, this law may apply to you.

Virginia

Virginia’s law took effect July 1, 2025 and covers children under 16 who appear in at least 30% of monetized content over 30 days. The trust must follow Virginia’s Uniform Transfers to Minors Act, and children or guardians can sue for violations.

Utah, Montana and Arkansas

• Utah (effective May 7, 2025): creators earning over $150,000 a year from content featuring children must set aside 15% of those earnings in a trust.

• Montana: creators who meet a platform’s pay threshold, or earn at least $0.10 per view, must fund a trust for their minor child.

• Arkansas: the Content Creation Protection Act (HB 1975) was enacted in 2025. Its reported effective date is July 1, 2026.

New York and New Jersey

Bills have been moving through both states, but as of mid-2025 neither state had made a child influencer bill law. Check the current status, because this may have changed.

Takeaway: Where you live matters a lot. If your state has no creator-specific law, you’ll need to rely more on the practical steps below.

10 Practical Steps to Protect Your Earnings

1. Learn who owns what

Find out whose name is on each account: your YouTube channel’s AdSense, your TikTok or Instagram payout, your PayPal, and your brand-deal payments. Write it all down. Knowing where money flows is the first step to protecting it.

2. Keep your own records

Start a simple spreadsheet or notebook. Track the date, brand or platform, amount earned, and where it was paid. Save screenshots of analytics, payout pages and brand emails. If a dispute ever happens, records are your strongest evidence.

3. Ask for a blocked or custodial account in your name

A Coogan trust account is a blocked account, and a parent or guardian opens it in the child’s name to preserve the child’s earnings until adulthood. If your state doesn’t use Coogan accounts, a UTMA custodial account is a common alternative. A UTMA account belongs to the minor, and the custodian has a fiduciary duty to use the money only for the minor’s benefit.

A friendly way to bring it up: “Can we put a set percentage of every payout into an account that’s in my name for college or my future?”

4. Agree on a split in writing

Even a one-page family agreement helps. Include what percentage goes to your savings, what covers business costs (equipment, editing), and what is used for family expenses. Writing it down avoids “I thought we agreed” fights later.

5. Put it in the contract with brands

When a brand offers a deal, ask for the contract to say payment goes into your trust or custodial account (or at least that your name appears on the agreement). In California, direct contracts with brands can trigger the Coogan requirement. Brands often have to follow it anyway.

6. Understand how the law can back you up

Some laws let you take action later. Minnesota, Illinois and Virginia all give minors or guardians the right to sue for violations. In UTMA cases, the legal system can step in too. In one North Carolina case, a court removed a father as custodian of his daughter’s accounts and ordered him to repay money he had misused. The catch is that there’s no proactive enforcement, and the account owner, or a parent on their behalf, must petition the court for relief. Prevention is much easier than recovery.

7. Don’t ignore taxes

Your earnings are generally treated as your income, even when the payout goes through a parent’s account. Filing correctly protects both you and your family. Talk to a tax professional (many offer free first calls), and keep copies of any tax forms.

8. Protect the accounts themselves

Your channel and brand are valuable assets. Use strong passwords and two-step verification. Make sure you can always recover your own accounts. Keep copies of your raw footage and content files.

9. Build a trusted-adult network

You don’t have to handle this alone. A grandparent, aunt or uncle, school counselor, or a trusted family friend can help you ask the right questions. If you need legal help, look into your state’s legal aid organizations or bar association referral services, which often offer low-cost consultations.

10. Plan for your 18th birthday

Before you turn 18, make a checklist: transfer ownership of channels and payout accounts to you, collect all records and passwords, check the balance in any trust or custodial account, and ask what will happen to old content featuring you.

A Note on Doing This the Right Way

Please don’t lie about your age to platforms to get your own payout account. It can get your account banned and your earnings frozen. The better path is to keep the arrangement open and documented with a parent or guardian, and add safeguards like the ones above.

Also remember that most parents want what’s best for their kids. Starting with “let’s set this up so everything is clear and protected for both of us” usually works better than starting with distrust. If a conversation isn’t going anywhere, bring in a neutral adult.

Frequently Asked Questions

Do these laws protect me if I run my own channel at 16?

Not always. Some laws, such as Illinois’s, explicitly don’t apply to minors who produce their own content. Minnesota’s law is more supportive of teens aged 14-17 running their own channels. California’s Coogan expansion can apply when a brand directly contracts you.

Is my money really mine?

It depends on your state and your situation. Where no specific law applies, parents may have broad legal rights over a minor’s earnings, which is why written agreements and separate accounts matter.

Can I sue my parents?

Some state laws allow minors or guardians to bring claims, and courts can hold custodians accountable. This is a serious step. Talk to a legal aid organization or attorney first.

What if I live in a state with no law?

Use the practical steps: records, written agreements, custodial accounts, and trusted adult support.

Conclusion

Being a teen creator is real work, and your earnings deserve real protection. Learn where your money flows, keep records, push for a trust or custodial account, put agreements in writing, and get qualified advice when the numbers get serious. The earlier you set this up, the stronger your position will be when you turn 18.