There’s a nearly endless list of reasons to teach your children about finances.
But money matters for children go beyond budgeting and saving. Nowadays, as the cost of living continues to skyrocket, teaching kids about investing and the stock market has never been more critical. In fact, raising money smart kids could set them up for life.
Start teaching these valuable lessons by downloading the 3 apps discussed below to help your children practice investing:
1. Stockpile
The primary advantage of Stockpile for children learning about investing is its usage of fractional stock shares. Your young ones can select companies they actually know about and be able to afford it.
Name-brand notoriety is crucial in keeping children engaged in investing. And Stockpile’s fractional stocks eliminate the significant cost it would take to invest in the Amazons, Disneys, and Googles of the world, otherwise.
Custodial accounts make Stockpile ideal for children and their parents, giving guardians approval power over any actions.
Stockpile also knows how to reach children with company names that speak to them, allowing young investors to make brand associations. For instance, young users will see a Batman logo when TimeWarner comes up as an option. Similarly, Mattel will have a Barbie avatar.
With over 1,000 stocks to choose from, Stockpile offers a seamless user experience, a mobile app, and the ability to check prices and buy at any time.
2. BusyKid
BusyKid connects a child’s allowance with investment opportunities.
Start by entering your child’s age. From there, BusyKid makes recommendations for chores, how often they should be performed, and the appropriate allowance payment. The options are flexible–you can customize the app and its suggestions to meet your kid’s needs.
When your child finishes with their chores, they check it off in the app. At this point, they can either cash out, purchase gift cards, donate the money, or invest.
Why does BusyKid thrive as an investment app?
Without BusyKid, your child can complete their chore(s) and decide they want to invest instead of receiving their allowance directly. You then need to remember the agreed-upon investment–something that’s easier said than done, given your busy schedule as a parent.
BusyKid removes the middle part. All transactions – whether direct payment or investments – can be done on the app. The money is automatically withdrawn from the parent’s bank account, ensuring there’s no confusion.
Similar to StockPile, BusyKid offers fractional shares, keeping investments low-risk for your children.
Provided you need a bit more convincing about BusyKid’s value, CNBC did a feature a few years ago that paints a more complete picture of the app.
3. Investopedia Stock Simulator
There’s a caveat to this suggestion: Investopedia’s Stock Simulator likely won’t appeal to younger children. It’s more for eager pre-teens and teens who’ve displayed a keen interest in investing.
This app prepares beginners for what it’s really like to trade on the stock market without any risk.
Investopedia’s Stock Simulator app introduces users to foreign exchange trading. It also includes stock research, analysis of mutual funds, paper trading, and trade challenges.
Using this simulator gives older children a risk-free way to gain expertise with realistic parameters and a user-friendly interface.
With these 3 investment-education apps, your children will be well on their way to a healthy financial future.