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Question for the Money Doctors

Question submitted on Dec 22, 2021.

Question

My 13 year old is interested in starting to invest a small amount of money($100-150) to learn more about stocks. Any suggestions for good apps or accounts?

Answer

Hi.  Good for you for fostering your child's interest in securities. Here's what I did with my kids when they were that age.  I had them select an industry in which they were interested, travel, sporting apparel, etc. Then we brainstormed companies in that particular industry to come up with a list of two companies.  Then, we conducted basic research on each company to determine which one they felt was the better investment.  You can find rather detailed financial information on most large companies at sites such as Yahoo Finance.  Once they settle on a stock pick, you can open up an UTMA account at an online brokerage since most provide commission free trading.

As an aside, you may also want to encourage your child to open up a Roth IRA for a minor once he or she has a part time job, and begin making contributions to that account.  Small contributions that early in life could pay off handsomely in retirement.

Good luck with helping your young one begin their investment career.


For additional information visit //www.360financialliteracy.org/

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