Forget about teaching kids the value of compound interest by escorting them to a local bank and helping them deposit their birthday money. These days, youngsters are picking stocks as if they’re mini-Warren Buffetts.
These same picks were mirrored at Stockpile, a similar platform that allows investing accounts for kids and offers fractional trading, access to crypto and savings features, starting at $4.95 per month. The top picks for kids in 2022 were: Apple, Tesla, Amazon, Disney DIS, +1.45% and the same Vanguard S&P 500 index fund.
Wait, kids can trade stocks? Kids can’t technically invest in stocks on their own until they turn 18, but they can trade through platforms in shared accounts with their parents. Greenlight’s account, for instance, is a standard brokerage account in the parents’ name, not a bank account under the Uniform Gift to Minors Act , which would pass to the child at age 18 or 21, depending on the state. Stockpile’s account is a joint brokerage account that does transfer after the age of majority.
So if your kid is racking up big wins trading meme stocks with babysitting proceeds and had a really good year , then you might have to foot quite a tax bill. Kiddie tax rules are complicated, so you might want to consult a tax professional for help to know if you need to file a return for your child or if they can be included on your return.
On all the investing platforms aimed at kids, there are educational resources and learning programs. At least some of it seems like it’s getting through, by evidence of a top S&P index fund being among the popular individual stocks that usually get all the attention. Finra recently released a report about the “risky behavior” of investors 18 to 34, who are trading options, buying on margin and investing in cryptocurrency in greater numbers than their older counterparts.
Was the 'opinion' of a kid?
YES😂start em young
Kids should be investing early, but that article headline makes for a biased opinion piece.
Kids should learn about the market as early as they can.
Some people don't deserve opinions