Want to know how to invest if you are under 18? I think the best age to start investing is when you are still young. Other parents open an investment accounts for their kids when their kid is at a month older. Read the details on how to start investing early even you are at a minor age.
One of my reader in Return On Investment blog asked last night. While I am chatting to him on Facebook, he said he wants to invest money. He thank me for the encouragement and for the knowledge I have shared in the blog.
Louis: “How to invest if I am just 17 years old. I am curious about stocks, mutual funds and how young people became rich. If you don’t mind, let me know how to start investing in stocks while I am studying in high school.”
Me: Hi Louis, thank you for dropping by in my blog. Yes you can invest in the stock market at a young age but you need to ask your parents to open an investment account for you. If you want to invest in the stock market, ask your parents to open a stock brokerage account for you. That’s a good idea. I know many young teens who just wants to spend money enjoying their life, playing online games, gimmicks and dating. I admire you for being wise.
How to Invest if You are Under 18?
Step 1. Ask Parental Consent or Guidance.
Your parents is your custodian since you are under 18, so, ask for guidance and consent.
Step 2. Ask your parents to open an investment account for you.
For parents, you need to bring your child birth certificate or any legal documents as a proof of being a parent of the child. You can open an investment account in the bank (unit investment trust) or any investment firms for stock brokerage account.
Step 3. Fund your account.
Since you are just under 18 and no job. All you need to do is to save some portions of your allowance. If your parents gave you $10, save $5. And when you have $100, invest it in stocks.
Investing is like playing a piano. If you will learn how to play a piano when you’re at 5, I am sure you will become a virtuoso pianist when you are at 18 year old. In investing money, if you will start knowing ti at 18, you will become a successful investor and achieve financial freedom. But, it all depends on how do you want to become; an average investor or a rich investor someday. Same as playing a piano, do you want to become a virtuoso pianist or you just want to play a piano? Is it enough for you to know how to touch the piano keys? Or want to become a famous pianist?
Tips for Young Investors Under 18
- Do not be in a hurry. Learn more. Equip yourself and mind about investing knowledge and skills. Learn different financial terms and investment terms.
- Though, it is wise to invest as young as you can, invest wisely by asking advice. You can ask advice on the forums, or read advice from the blogs or if you want, ask the elder (preferably those who are already investing money) on how to invest and what to invest in.
- Good to you. Because at a young age, you are taking advantage of compound interest and time. They are your best financial allies.
- Create an investment plan and financial goal.
- Invest in high risk types of investments. You can afford as high risks types of investments because you are young. And when you are getting older, learn how to distribute your investments wisely.
Further Reading: What Should a 17 Year Old Invest In?
I hope you find this investing tips for people under 18. If you like this page, share it with your friends on Facebook and Twitter. I want to know what’s on your mind and ideas on how to invest if you are under 18. Thank you!