Stock Trading Risks Kids Should Understand: Trading for Kids

It’s important to know what you’re getting into, and to be aware of how stock trading can positively and negatively impact your financial situation.

Discuss Financial Information Regularly

Early investing can mitigate the risk of financial insecurity and broaden opportunities for your child.

Keep Your Child’s Attention and Focus on Long-Term

To help your children become more knowledgeable about the stock market, talk to them about its aspects at least weekly. 

Discuss Stocks and Bonds and Which Make a Better Choice

You’ll want to introduce the concept of risk to your kids and compare that to saving.

Stock Trading Risk for Kids

The risks of trading stocks can be high because you are bidding on an investment with no guarantee of what will happen next.

How Can a Kid Trade Stocks?

For a kid to trade stocks, they need to have access to a custodial account. These accounts are set up by the parent or guardian, and allow a child to trade stocks.

Apps that Allow Stock Trading for Kids

The best investing apps for beginners focus on simplicity, functionality and ability to grow with the investor.

1. Acorns Early  ($10 Bonus)

Acorns offers a custodial account for parents interested in opening an investment account for their child called Acorns Early.

2. Greenlight App

It’s easy to use and can double as a banking apps for kids and teens. The app will teach you the basics of investing, how to trade ETFs, etc.

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