My son has almost always chosen to save money (birthday/ Christmas, etc.) whereas my other child blows it on Amazon almost as soon as she gets it. He just completed a module in school where kids invest in the stock market.
He asked me if I could help him buy stocks for real. He knows he could lose anything he invests and will pay fees, etc. I’m not going to let him blow his entire savings but is there an easy way, e-trader, etc. that he could invest a couple hundy to see what happens? Are there any resources you’d recommend for him (13 year old).
My sister and her kids put together a household stock trading game where they could paper trade… I know your son says he’s ready to lose, but sometimes that feels a little bit different when you’re retroactively talking yourself into all the wins you could’ve had… Maybe you discuss different types of strategies and holding periods with him and his sister, and after you guys have played for 2-3 months, get them started with a small brokerage account or give them books where they can learn some more before jumping in with both feet? My sister’s kids had a really interesting experience, but quickly drifted toward some of the most active stocks, then one of them tried to chase the other’s winning pick and quickly retreated after getting burned… Sorting out things like risk tolerance are often difficult to do until you have money disappearing from your bank account, but… sometimes a little healthy sibling rivalry can position kids to learn a lot more than they otherwise would, and it becomes a pretty organic and low-cost introduction to the stock market.
I set up a DRIP for my grand niece and grand nephew. That way you can generally add small amounts and there’s a fairly broad variety of companies to choose from. One of them has Walmart and one of them has Costco. I started their dad with Walmart back when he was a little kid and added to it monthly until he was about 16. When he was little he thought that since he owned stock in Walmart he could just go in and shop without having to pay. Ha ha.
My son has almost always chosen to save money (birthday/ Christmas, etc.) whereas my other child blows it on Amazon almost as soon as she gets it. He just completed a module in school where kids invest in the stock market.
He asked me if I could help him buy stocks for real. He knows he could lose anything he invests and will pay fees, etc. I’m not going to let him blow his entire savings but is there an easy way, e-trader, etc. that he could invest a couple hundy to see what happens? Are there any resources you’d recommend for him (13 year old).
Thanks
SAME to a T!! lol .The 13 yrold asked me the other day at what age he could ‘buy a condo and rent it out ‘ haha . The 11 yrold would spend every single cent in a day on sweets and clothes IF she could:)
It’s super simple, mobile friendly, and you can purchase small amounts of stock.
Want to purchase $5 of Amazon. Great, you now own 0.0005 shares of Amazon.
He won’t lose his shirt if the stock tanks, but you still get to see how things rise and fall.
They also have their own “mutual” funds where they group different companies in like interests- up and comers, all that glitters, 420, etc…
They have set trading times so there is no Gamestock kind of crap happening on their site.
Very very low fees, but no ability to short or set options.
Stash is not made for serious trading, but it’s great for depositing $20 and seeing what happens.
It’s super simple, mobile friendly, and you can purchase small amounts of stock.
Want to purchase $5 of Amazon. Great, you now own 0.0005 shares of Amazon.
He won’t lose his shirt if the stock tanks, but you still get to see how things rise and fall.
They also have their own “mutual” funds where they group different companies in like interests- up and comers, all that glitters, 420, etc…
They have set trading times so there is no Gamestock kind of crap happening on their site.
Very very low fees, but no ability to **short or set options. **
Stash is not made for serious trading, but it’s great for depositing $20 and seeing what happens.
Well damn , if my 13 yrold cant short or set options …we’re OUT:)
Not what I recommend because I don’t like the company or its business practices, but my son is on Robin Hood. He started with $150 from birthday money and as the market rose 20% while I didn’t trade at all, he committedly traded daily and was able to garner a return of less than 5%. He learned a lot especially because he was using real money. However be careful, they do allow options trading and I had to have lengthy discussions about how options worked and what he was allowed to do an not do. Another reason I don’t approve of it because allowing children and the uneducated to options trade is not being a good service provider.
I suggest have him/her(they) select their 3-5 favorite companies, companies they know something about their product/service (ie Apple, UBER, Disney, etc) and help them pick one to start. Show them charts etc for their favorites companies. Be OK with what they pick.
My son has almost always chosen to save money (birthday/ Christmas, etc.) whereas my other child blows it on Amazon almost as soon as she gets it. He just completed a module in school where kids invest in the stock market.
He asked me if I could help him buy stocks for real. He knows he could lose anything he invests and will pay fees, etc. I’m not going to let him blow his entire savings but is there an easy way, e-trader, etc. that he could invest a couple hundy to see what happens? Are there any resources you’d recommend for him (13 year old).
Thanks
Sign up for a WeBull account, deposit $100 (so you get up to a couple free shares) and let them start “paper trading”. If you’re not familiar with it, paper trading is a simulation using the current market. In times like today when the market is dumping, it’ll give them the opportunity to learn without losing their cash. Below I have included my WeBull link. If you sign up using it, we both have the chance to score a couple free shares.
Also the way things are going, they might be better off learning all they can about Crypto and finding the next “doge” that will run 1000%+.
I bought my son a share of Apple when he was that age as a Christmas gift. Seeing it grow has inspired him to put more of his $ in to stocks. We got him a no cost account at TDAmeritrade. We’ve talked about selling off half of his apple shares now that they split, but hasn’t yet. He’s just been holding onto to it all watching it grow.
My son has almost always chosen to save money (birthday/ Christmas, etc.) whereas my other child blows it on Amazon almost as soon as she gets it. He just completed a module in school where kids invest in the stock market.
He asked me if I could help him buy stocks for real. He knows he could lose anything he invests and will pay fees, etc. I’m not going to let him blow his entire savings but is there an easy way, e-trader, etc. that he could invest a couple hundy to see what happens? Are there any resources you’d recommend for him (13 year old).
The big problem with having money in your kid’s name is that they have to declare it on their FAFSA when they are getting ready for college.
A Roth IRA will fix this problem.
Have the rules changed on this? My son has a Roth IRA, but it can only be funded up to the amount he earns as income. Also I think there were rules on what he could invest/trade in and it was very conservative.