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There is no better time to set up your child’s financial future than educating them on some key investment choices. This will come with many other life lessons, such as the value of money, how to manage money well and how important it is to save for a rainy day. It also releases some of the anxiety and pressure that come with being a parent. You want your child to have the funds to experience life while they can, but you also want them to be financially free, secure and sensible.
So we’ve put together some investment ideas that you could prepare and slowly educate your teen into getting their money right at the best time possible.
Comic Books & Collectibles
It’s always good to know what your teen’s hobbies and interests are, and if they are in the direction of gaming, films or comic book stories, then this would be a perfect opportunity for your teen to turn that hobby into an investment.
Of course, finding these rare comics and collectables would be extremely fast for those who already indulge in the hobby so the research wouldn’t even feel like research. This is a great way for them to make the most of their hobbies so introducing them to this variation would be a great way for them to build their confidence in the world of investing.
Be sure to remind them that buying second-hand anything online comes with the risk of being a scam so make sure they are protected in any of these cases and do their research to establish the real from the fake.
High-Interest Rate Savings Account
An easy investment option for teens would be to pick a high-interest-rate savings account. Many banks offer exceptional interest rates exclusively for a younger bracket. This way, you could not only put money in there for them on birthdays and other holidays but when they get their first job, ensure they understand the importance of putting little bits in every month and how it all accumulates over time.
A good way of motivating them to remember is to remind them of how they can spend it in the future, whether it’s buying a home, travelling for a year or even making their life more comfortable.
Stocks & Shares
Another way of playing the long game would be to teach them about stocks and shares. This is a good way for them to invest their money into brands they like now (big or small) and to do abit of research into those that could potentially be up and coming. It’s a great way to buy stocks at an affordable price and with the correct amount of research, your teen could be turning huge profits in the future. At some of the prices you can buy, it is just worth the risk, plus there is little risk factor.
Although it is important to teach your teen and yourself about the other risks of this type of investment, there are scammers all over these platforms that won’t think twice about stealing private information and your teen’s money, so be careful with ‘guaranteed returns’ and any broker scams that you might come across. Be sure to trust the research you’ve found and ignore all the noise.
Final Thoughts
Investing young can be daunting but if you provide your teen with the right guidance and information, you can sleep easy at night knowing there is a high chance that their financial future is secure. Be sure you teach them all the potential risks before investing. Although there are resources such as investment fraud lawyers, it would always be better if they had the means to protect themselves before resorting to that.
