Best Investing Apps for Kids
Investing can be a great way for children to learn about financial planning and money management, as well as the principles of saving and investing. It can also help children develop important skills such as decision making and problem solving. Here are some potential benefits of children investing:
Learning about money: Investing can help children understand the value of money and how it can be used to generate wealth over time.
Building financial literacy: Investing can teach children about the different types of investments, such as stocks, bonds, and mutual funds, and how they work.
Developing long-term thinking: Investing requires a long-term perspective, which can help children understand the importance of planning for the future.
Building financial independence: By managing their own investments, children can learn how to make their own financial decisions and become more financially independent.
Potential for financial gain: If the investments are successful, children can potentially earn a return on their investments, which can help them build wealth and save for their future.
There are many apps that can help kids learn about investing. One app that may be particularly useful is Acorn.
Acorn app is a micro-investing app that makes it easy for kids to start investing with small amounts of money. The app rounds up purchases made with a linked debit or credit card to the nearest dollar and invests the difference in a diversified portfolio of exchange-traded funds. This can help kids learn about the principles of investing and the power of compounding without having to invest a large amount of money upfront. Other popular investing apps include Robinhood, Stash, and Betterment.
Robinhood: This app is popular with younger investors (however, you must be 18+), and offers a range of investment options, including stocks, ETFs, and options. It has a user-friendly interface and offers educational resources to help users learn about investing.
Stash: This app is also geared towards beginners and offers a range of investment options, including individual stocks, ETFs, and mutual funds. It also has an educational component that can help kids learn about investing. You have the ability to open a custodial account (Kid’s Stash).
Greenlight is a financial technology company that offers a mobile app for parents to teach their children about money management and responsible spending. The Greenlight app is designed for kids and teens and allows parents to set limits on their children's spending, track their spending habits, and give them the freedom to make their own financial decisions.
With the Greenlight app, parents can create a virtual allowance for their children, set spending limits on specific categories or merchants, and track their children's spending in real-time. Children can use a debit card that is linked to their Greenlight account to make purchases and track their spending. The app also includes features such as goal-setting, budgeting, and educational content to help kids learn about money management.
Overall, the Greenlight app is intended to provide children with a safe and controlled environment to learn about responsible financial management and make their own financial decisions.
It's important to note that investing carries inherent risks, and kids should always be supervised when investing and taught about the risks involved. It's also a good idea for kids to learn about saving and budgeting before diving into investing.
Note: you may have to help your kids set up the accounts, check websites for requirements.
