You know the earlier you save the more wealth you’ll have in retirement, but what about your kids and What Age Should you Open a Brokerage Account for your Child?
What if you started them young – wouldn’t they amass a lot of wealth just by investing early?
It makes sense and it’s perfectly acceptable to open an online brokerage account for your children.
The key is to involve them in the process in age-appropriate stages so you not only set them up for financial wealth, but they’ll have the knowledge to manage money when they are older too.
The Right Age to Open a Brokerage Account for a Child
There is no right or wrong age to get your child involved in the stock market.
Because time is on their side (they aren’t retiring anytime soon or need large amounts of money), you can invest aggressively, letting their money grow with the high rewards.
The right age to open an online brokerage account for your child is as soon as you can afford to open one.
Most online brokers don’t have high minimum balance requirements, so you can open an account with only a little money.
How to Manage a Brokerage Account for a Child
The bigger question is how do you manage a brokerage account for a child?
Again, there’s no right and wrong answer.
You know your child and what he/she can handle. Introduce him or her to investing in stages.
Let your child see you handling the account even if you just say you are investing some of the money he/she received for birthday gifts for his/her future.
The terms will become natural to your child rather than feeling like a foreign language when they enter adulthood and have more decisions than they can handle to make every day.
As your child matures and can make decisions, let him/her help you manage the account.
Whether your child decides how much money to invest after receiving gifts or earning money from chores or he/she decides where/how to invest the funds, you can guide your child but let him/her make the decisions to empower your child.
The Benefits of Working with Canadian Online Brokers for your Child
Your child can benefit in many ways from working with Canadian online brokers including:
- Learning basic and complex personal finance terms long before adulthood
- Making investing a natural part of life instead of a complex topic that they never understand
- Learning how to manage money wisely rather than living paycheck-to-paycheck
- Learning how to make tough decisions
- Amassing wealth before he/she hits adulthood
The answer to the question; What Age Should you Open a Brokerage Account for your Child?
“It’s never too early or too late to open a brokerage account for your child.”
Look at the available online brokers and find the one that will work the best with you and your child, helping to grow his/her wealth and personal financial knowledge.
You’ll give your child the best chance at a successful life financially if you start him/her early on a positive financial journey.