Gone are the days where you needed a lot of money to invest!
Did you know that you could buy fractional shares? That’s right, if one share of stock that you have been eyeing for yourself, child, or teen is out of your budget (at least for right now) you can buy just a percentage or fraction of it!
You could buy stocks for as little as $50.00 or even less!
Now, you might be thinking, what is the point? How will investing $50.00 make my child or teen wealthy?
Did you know that Warren Buffet purchased his first stock at only 11 years old? And we all know his success story! He trained himself to get into the habit of investing early, and was able to build a profitable portfolio by continuing to build on top of that first investment and allowing compound interest to do the rest of the work! Teaching your kids how to invest and exposing them early will no doubt set them up for financial success.
Below are three steps you can take right now to begin buying stocks for your child or teen:
1. RESEARCH
Start by using our Free Stock Worksheet and select at least five stocks that you want to research to invest in. Preferably start researching companies that your child/teen is familiar with, companies such as:
Amazon ($AMZN)
Disney ($DIS)
Alphabet ($GOOGL)
Nike ($NKE)
Roblox ($RBLX) ...just to name a few!
2. OPEN YOUR ACCOUNT
Open a custodial investment account so you and your child can begin purchasing stocks. You can open a custodial brokerage account, custodial retirement account (if your child has earned income) or both!
A few major brokerages that are allowing fractional share investing are:
Some popular apps that allow this as well are:
3. INVEST
You will need to transfer and deposit funds into your account of choice and then all you have to do is purchase the stocks that you have researched and believe are great long term investments. Stock Market Investing with Wall Street Junior is a great, beginner friendly resource that helps students learn how to become great investors and what to look for before building their portfolio.
So don’t over complicate it. You don’t need to have a lot of money to start investing. Just start with what you have!
View our financial education resources for kids and teens then teach your kids personal finance and how to invest by clicking here.
If your school or group is looking for a finance curriculum to teach your students about how to manage money, click here to learn more on how to integrate KidVestors into your program!
Parents, teach your kids money and make money conversations normal in your household by visiting here.