It can be difficult for young people to start investing. They may be dealing with limited funds, student loan debt, or lack of knowledge about how investing in the stock market works. By no means should that hold young investors back from getting into the market. Rather, they should educate themselves and find the best investment vehicle to suit their particular needs. There is no simple answer to that question, although there are some things to keep in mind when deciding between the two.
Teen friendly stocks/mutual funds?
Mutual Funds And Socially Responsible Investing - Fidelity
When it comes to teaching children about money, you should get them involved early…as young as 7 or 8 years of age. Have them help with the bill paying. Expose them to preparing your tax return. And, if you have the money, set up a brokerage account for them. Let them pick a stock or two. The neat thing about this concept is it introduces children to buying the companies that make the goods we want. For children, that means companies like Mattel or Disney.
Five Eco-Friendly Funds
As a parent, I want the best for my three boys. I want to do everything I can to set them up for success. I know you want the same for your kids too! Others just want to help their kids get a college diploma without taking on any debt.
The basic idea is to find a smart place to start and to select the funds based upon the child's investment objective, which will primarily derive from the number of years to invest. Often, this is a long-term objective, meaning that stock mutual funds can be the best funds for kids to get started investing. We don't address saving for education specifically here, but rather focus on the idea of children getting their first start with investing.