Photo by Tima Miroshnichenko on Pexels.com
" data-orig-size="1880,1253" data-image-title="a businessman raising his hands for being successful" data-orig-file="https://smallivy.files.wordpress.com/2022/03/pexels-photo-7567565.jpeg" data-image-description="" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-medium-file="https://smallivy.files.wordpress.com/2022/03/pexels-photo-7567565.jpeg?w=300" data-permalink="https://smallivy.com/2022/03/02/brokerage-accounts-for-minors-interested-in-investing/pexels-photo-7567565/" alt="" class="wp-image-21502" data-large-file="https://smallivy.files.wordpress.com/2022/03/pexels-photo-7567565.jpeg?w=723" />Photo by Tima Miroshnichenko on Pexels.comToday we have a guest post from Timmy M, the founder and CEO of Investing For Kids By Kids, a business dedicated to teaching kids about investing in stocks and cryptocurrencies. He has been investing since he was seven years old. He is currently 12 years old and lives in Nosara, Costa Rica. His post covers Greenlight, a broker he has found works well for minors who want to invest.
(Note, this site contains affiliate links. As an Amazon Associate I earn from qualifying purchases. When you click on an affiliate link and buy something, The Small Investor will get a small commission for the referral. You are charged nothing extra for the purchase. This helps keep The Small Investor going and free. I don’t recommend any products I do not fully support. If you would like to help but don’t see anything you need, feel free to visit Amazon through this link and buy whatever you wish. The Small Investor will get a small commission when you do, again at no cost to you.) Timmy M. is an affiliate advertiser for Greenlight and will receive a fee for those who sign up using his link.
It’s difficult for people under 18, aka “minors”, to invest. Minors like me legally can’t have a brokerage account under their own name, but they can have a brokerage account under their parents name and have an unofficial agreement with them that the money is theirs. The other option is to have what’s called a custodial account, which is still money under the parents’ name but the parent is legally required to use the money for the benefit of the child (ie, college savings). I’ve looked at many, many brokerage accounts, but Greenlight is the best. In this article, I dive into what Greenlight is, why you should use it, and how it can help your child succeed at investing and managing money.
Greenlight is the best brokerage account for kids and teens. It provides the key features that your child needs to excel at personal finance and investing. Investing is a great financial opportunity for kids, and the first step is creating a brokerage account.
Greenlight includes a brokerage account, a savings account, automated allowance that comes directly from your account, and an optional debit card. It also includes features for parents, including a savings account for parents to transfer money, and a dashboard where you can adjust the settings for your child’s account. It includes a mobile app where your kids can buy and sell stocks, see their savings, and donate to charity. Greenlight is not a custodial account, but In reality, they’re both basically the same for your child, because (I hope!) it’s not like you’re going to take the money from them.
Creating a Greenlight account for your child is also not that difficult. The setup is easy and intuitive, and best of all… cheap. Greenlight has three plans: a $5 plan that includes a debit card but not the brokerage account, a $7 plan that includes the brokerage account, and a $10 plan that has top-level security and a black card. These plans include up to 5 children, and the subscription is billed monthly. Use my referral link to sign up and get $50 (I get $30). You also get a one month free trial, so in total, assuming you got the $7 plan, you’ll get eight months free. If you use the $10 plan, it would be 6 months free.
So what are you waiting for? Set up a Greenlight account for your child and help get them started today!
(If you enjoy The Small Investor and want to support the cause, or you just want to learn how to become financially independent, please consider picking up a copy of my new book, FIREd by Fifty: How to Create the Cash Flow You Need to Retire Early This is the instruction manual on how to become financially independent.)
Join the conversation and help make this blog more exciting! Please leave a comment. Also, if you have an investing question, email [email protected] or leave the question in a comment.
Disclaimer: This blog is not meant to give financial planning advice, it gives information on a specific investment strategy and picking stocks. It is not a solicitation to buy or sell stocks or any security. Financial planning advice should be sought from a certified financial planner, which the author is not. All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.
