Allow 11 year old to invest in stocks?

amother

Tue, Sep 24 2024, 7:33 pm

Would you allow that? Talking about small amounts of his money (under my name as he is a minor) Child is begging to do this (in general child is very into business ideas and how to make money...)

amother

Carnation

Tue, Sep 24 2024, 7:35 pm

I let my kids do simulated trading. I would not allow real trading at that age.

amother

Marigold

Tue, Sep 24 2024, 7:41 pm

Let him do paper trading on apps which means it’s fake money you get in apps
Not real money - it’s like gambling
They can get sucked in.

amother

Salmon ↓

Tue, Sep 24 2024, 7:43 pm

Not real money

Unless investing in for example mutual funds where the kid won’t touch it for years and years

Maybe a CD that’s locked in for a year

giftedmom

Tue, Sep 24 2024, 7:45 pm

I would maybe allow something real safe and slow growing. I think it’s great to allow kids to follow their interests in a safe and controlled way.

amother

Jasmine

Tue, Sep 24 2024, 10:46 pm

I would invest for him in his name. I have a son who started around that age and he enjoys it so much. We research the stocks and discuss how much he wants to invest of his money and then my husband buys the stock. So my son can follow his stocks etc but cannot actually access or control it (yet). Every time he makes some money he can invest a little more if he wants.
I'm not sure exactly what kind of account it is but I believe it's some sort of custodial investment account.

amother

Mistyrose

Tue, Sep 24 2024, 11:06 pm

amother OP wrote:

Would you allow that? Talking about small amounts of his money (under my name as he is a minor) Child is begging to do this (in general child is very into business ideas and how to make money...)

My son wanted to buy some but my dh discouraged him because there is a monthly fee or smth? That you pay regardless of how much the stocks are earning you

amother

Natural

Wed, Sep 25 2024, 2:45 am

Yes. My kids start around there. We use an app and they research what sticks, etfs and funds they are interested in. Their allowance, once it grows large enough, can be invested if they have a healthy split between their savings and spend account. It's important to teach financial responsibility from a young age and we believe strongly in helping them grow their money together.

amother

Pumpkin ↓

Wed, Sep 25 2024, 3:09 am

Yes! I think it's a great idea to put some money into a stock fund or to buy some safe stocks and hold. This should be done with adult supervision and research and as a learning experience. My dh and ds did this together when he was in 5th grade. The money grew very nicely and BH he just used it to buy an engagement ring! Fortunately, he will also have some additional money left for related expenses.

amother

↑ Salmon

Wed, Sep 25 2024, 4:16 am

amother Pumpkin wrote:

Wow cool dh bought my ring selling stocks as well

amother

Chartreuse

Wed, Sep 25 2024, 4:17 am

Yes my 11 has lots of stocks. We taught him about investing and we rather he put his money there than buy junk

amother

Navy ↓

Wed, Sep 25 2024, 4:19 am

amother Pumpkin wrote:

I also have a son like that and would love for him to invest in something wholesome.

I am illiterate with stocks though.
Can someone tell me where to start? I would so appreciate.

justforfun87

Wed, Sep 25 2024, 5:32 am

When my 12 year old son earns money I encourage him to give maaser, put some in the s&p 500, and keep for something he wants. I think this is a healthy balance of money.

cfriedman2

Wed, Sep 25 2024, 7:21 am

yes, but I would have her follow stocks shes interested in for about 2 months checking the reports daily before investing. Have her learn about the process and tracking stocks so that she knows what she is doing

amother

↑ Navy

Wed, Sep 25 2024, 4:52 pm

If I invest in S&P through Robinhood is there a downside?

Where else would I invest in S&P?