Have you ever wondered where teenagers get most of their stock market information? According to a recent survey, 43% of teens have taken to social media to learn more about investing. Yes really. This same survey found that if given money to invest, 43% would invest in the stock market (good), while 25% would focus on cryptocurrency (not so good).
These results highlight the importance of getting teens to invest early with the right advice. To that end, choosing the right investing app to help educate your child about investing can be a helpful first step.
Pick the wrong app and the experience can feel more like a game than an investment (cough, Robinhood, cough). Pick a solid app, and your kid just might be on the path to a solid wealth building life. Here are five of the best apps to help your teen get started investing.
5 investing apps for teens
This banking and investing app offers features your kids will love. These features include personalized debit card and direct debit for allowance. It also has features mom and dad will appreciate, like pre-approved stores where your child can spend and real-time notifications whenever the card is used.
But it’s the investment arm where this app really shines. Offering parental control over every transaction, Greenlight has no transaction fees, allows small investors to buy fractional shares of their favorite companies, and has an educational aspect that teaches children deeper concepts like growth. composed. It should be noted that the investment platform is only available through the card’s mid and top tier options, Greenlight + Invest and Greenlight Max.
Fidelity Youth Account
Aimed at teens ages 13 to 17, the Fidelity Youth Account helps kids learn to spend, save and invest responsibly. Although parents are required to have a Fidelity account for their children to use this tool, it is important to note that this is a teen-owned brokerage account. It is not a custodial account, which means the teenager makes the investment decisions. This monitoring may not be enough for some parents. But if you’re willing to give your child some leeway, this tool could be a great springboard for potential investors.
This brokerage account allows teens to spend, save, and invest in one place. They can start investing with fractional shares and as little as $1. Fidelity Youth accounts are free, require no minimum balance, and do not charge national ATM fees.
Voted the best investment app for parents by Forbes, Stockpile offers supervised accounts. These accounts allow children to choose which stocks they buy and sell, but with parental approval. Teens have a separate login from their parents where they can browse thousands of popular stocks and ETFs and build their portfolio the way they want. Once trades are requested, mom and dad can log in from their account for approval.
This app is free, which means you won’t pay any trading fees or commissions for your teen. It also has a rather unique feature: this app offers gift cards for stock.
If your child is a little too young or not yet interested in investing, you can choose an option that involves more parents, such as Ally Invest’s deposit account. These accounts offer many of the same features as other teen investing apps. These features include helping teens build their investment portfolio, earn dividends, and work toward long-term financial goals, like saving for college.
The setup process isn’t quite as seamless, though. This requires parents to open their own Ally Invest account in their name, choose the autonomous or robotic investment option, then select options such as risk tolerance and goals, and finally select a deposit account . So while this account might be a good option for some, it might not work for teens who are looking for a bit more hands-on approach to investing.
Acorns is perhaps best known as a review app. It will round your purchases to the nearest dollar and invest it automatically. For parents who are short on time but still have investment goals for their teens, the app offers a family account. For $5 per month, parents can add multiple children at no additional cost. Parents can open an account and have their child start investing in less than three minutes.
Acorns Early, as the account is called, is a UTMA/UGMA account. As such, these funds are not limited to education like a 529 savings plan. Acorns Early is transferable once your teenager becomes an adult. Although Acorns is parent friendly, it is not as teen friendly and does not have a separate teen login interface like Stockpile.
Teaching teenagers to invest is not easy. But with these five investing apps for teens, you can educate your teen about everything from the stock market to the importance of saving. While some apps require a little more parental involvement than others, all teach important lessons about the value of a dollar and how to make that dollar work for you.