Signing things before you turn eighteen

Almost every young person signs contracts long before they think of themselves as someone who signs contracts. Tapping "I agree" on an app, starting a free trial, joining a gym, or getting a phone on a family plan are all agreements. The law treats agreements made by minors as a special case, and the rule is more interesting, and more limited, than the version that circulates in school hallways.

The general rule: voidable, not void

In most states, a contract signed by someone under eighteen is generally voidable by the minor. That means the minor can usually choose to cancel it, a step often called disaffirming. It does not mean the contract never existed, and it does not mean the other side can walk away — the adult party is normally still bound.

The purpose is protection: it exists so that young people are not permanently locked into agreements they were not in a strong position to evaluate. It is a shield, not a strategy.

The exceptions matter more than the rule

Important

The voidability rule has significant carve-outs, and they vary by state. Contracts for necessities — commonly food, shelter, basic medical care, and sometimes clothing — are typically enforceable, so that people will still provide those things to a young person. Many states also enforce contracts for education loans, certain banking arrangements, and enlistment.

Disaffirming is also not consequence-free. States differ on what a minor must return, and whether they owe anything for value already used. And if an adult co-signed, that adult is usually fully on the hook regardless of what the minor does. The practical version of this rule is: it may protect you from being trapped, and it will not protect the adult who signed with you.

Free trials, auto-renewal, and the cancel button

The most common money problem young people actually run into is not a dramatic contract; it is a subscription that renews. Federal and state consumer-protection rules generally require that recurring charges be disclosed clearly before you agree, and a number of states have specific automatic-renewal statutes requiring clear notice and a straightforward way to cancel.

The habit that prevents almost all of this: when you start a free trial, set a reminder for two days before it ends, and find the cancellation path immediately rather than when you need it. If a service makes cancelling genuinely difficult, that itself may be a consumer-protection issue worth reporting.

Your money from a job is usually yours

Wages earned by a working teenager generally belong to that teenager, and federal law requires that wages be paid — an employer cannot hold them because of the worker's age. Some states have rules about accounts for minors, and most banks require an adult co-owner on an account for someone under eighteen, which is a banking practice rather than a limit on who owns the money.

One narrow but important exception exists for child performers: several states have laws requiring a portion of a minor performer's earnings to be set aside in a protected trust account.

Remember this

Contracts signed by minors are generally voidable by the minor, while the adult party usually stays bound.
Necessities, and in many states student loans and enlistment, are common exceptions that stay enforceable.
A co-signing adult is normally fully liable no matter what the minor does.
Find the cancellation path when you start a free trial, not when the charge appears.

Sources

This article provides general educational information, not individualized legal advice. KidsKnowRights is not a law firm, and reading this article does not create an attorney-client relationship. Laws vary by state, age, and circumstances, and they change over time. For advice about a real situation, talk with a licensed attorney or a legal aid organization.