When it comes to financial wellness, it’s not just for adults; teens can start on that journey too. In fact, one of the best things you can do for your teen is to set them on the journey of financial stability early. Teens are naturally inquisitive, and many of them are now interested in money-related matters, including investing. Of course, the term “investing” can be intimidating for teens, which is why a teen-friendly approach is necessary. For teenagers interested in the world of investing, it’s important to subscribe to the best investment apps for teens.
1. Bloom
Bloom is an investing app designed specifically for teenagers. And with this app, teens aged 13-17 can open a custodial account under the guidance of their parents. The Bloom app also gives teens access to thousands of Stocks and ETFs options.
One of the remarkable aspects of the Bloom app is its deliberate focus on promoting financial literacy among kids and teens. Bloom offers over 300 short lessons on investing and personal finance, along with gamified rewards that make learning enjoyable and engaging. This key feature makes Bloom one of the best investment apps for teens.
The downside to this app is the monthly subscription charges, which may not be beneficial for small accounts, as the subscription can eventually eat into the returns. With no account minimum balance and no commission, Bloom still offers the best investing services for teenagers.
2. Fidelity Youth
One of the best investment apps for teens that encourages teens to invest while keeping their parents connected is the Fidelity Youth app. With the Fidelity Youth investing app, teens aged 13-17 can save and invest their money. The good thing about this app is that it does not require subscription to open an account, and there is no minimum amount to open an account. With as little as $1, teens can begin their investment journey using the Fidelity Youth app.
The Fidelity Youth app offers a debit card to teens when requested. This debit card helps teens organize and manage their money, teaching them good financial tips and how to automate their savings to aid their financial goals. However, parents or legal guardians are usually required to open the Fidelity Youth Account for their teen.
To do this, parents must have an existing Fidelity account. For parents who don’t have a Fidelity account, you can easily open both accounts at the same time. Once the account has been opened, your teen can download the app and activate the account you opened, which you can review as a parent. As a parent or legal guardian, you can review the bank statement, account transactions, and trade confirmations. A Fidelity account is a good one for both the parent and the teen.
3. Acorns Early
Not only is Acorn one of the best investment apps for teens, but it’s also one of the apps that round up your purchases to the nearest dollar. Acorns Early is an investment account for teens which is a UTMA/UGMA (Uniform Transfers to Minors Act/ Uniform Gift to Minors Act) custodial account. This means that the parent or family member establishes and manages the account for the child until the child reaches adulthood.
You only have to download the Acorn app, create an account, and fund it. Investment can be done through Acorns Round-Ups, which rounds up purchases made from your linked bank account to the nearest dollar. Additionally, you can invest through recurring contributions, which can be automated to be deposited daily, weekly, or monthly.
Acorns Early offers several interesting features, including the ability to add multiple children, access to family financial advice, and potential tax advantages. However, using Acorn comes with a monthly subscription that ranges between $3-$12 per month, depending on the subscription plan.
4. Greenlight
As one of the top investment apps for teens, Greenlight provides features that encourages good money habits in young people. One of the significant features is the personalized debit card, which helps them understand what financial growth means. They not only learn how to invest, but they also learn good money habits. The best part is that they offer parental control, whereby parent can monitor their teens’ activity on the app. Parents also receive a notification every time the debit card is used.
Using this app, teens can search for over 4,000 stocks in the stock market and and also ETFs, gaining investor insight from the Greenlight assistant. This gives an assurance that your teen is not investing blindly. The app also encourages you to ask the right questions when reviewing stocks. With the Greenlight app, teens can make expert-informed buying and selling decisions.
There is no age limit for users, as Greenlight is just right for both kids and teens. This is because the account is usually in the name of the primary account holder, who is typically the parent or legal guardian. Likewise, all trade requests are handled by them as well. So the Greenlight app can only be used with guidance from the primary account holder.
5. Stockpile
Stockpile is a family-oriented app, and it’s a good one for beginners in investing, including teens. This app provides children under 18 with a platform to learn about money, from budgeting to spending smartly to saving and investing for the future. With a stockpile, teens can explore thousands of popular stocks and build their portfolio, of course, with the help of their parent or guardian. While teens can request a trade, the parent or guardian is ultimately responsible for approving it.
One cool feature of the stockpile app that makes it one of the best apps for teens is that it has no trading fees or commissions involved. Additionally, Stockpile offers stock gift cards for holidays and birthday gifts. However, it’s essential to note that Stockpile charges a monthly subscription of $4.95 for the Family Base and $9.95 for the Family Plus. For an annual subscription, a family Base account costs $47.45 while a family plus account costs $83.40. Both plans cover investing for up to five kids, but the Family Plus tier includes debit cards, savings features, and a college tuition rewards program.
6. E-Trade
Here is one of the best investment apps for teens that offers zero commission. With the E-Trade investment account, parents or legal guardians can open an investment account under the UGMA/UTMA for their teens, while controlling the account until the child reaches 18 or 21, depending on their location. Likewise, you can also withdraw the money as a parent or guardian for the benefit of your teen.
Another top benefit of using the E-Trade investment account for teens is that the first $1,050 in earnings is not subject to federal taxes. Likewise, the account qualifies for the $15,000 annual gift exclusion, which makes E-Trade one of the best investment apps for your teen.
7. Ally Invest
This US-based broker gives users access to both self-directed trading and automated investing. Ally Invest provides teens with access through a custodial account managed by a parent or guardian, which can be used to invest in stocks, ETFs, bonds, and mutual funds. A big plus to the Ally Invest app is that it is commission-free. With this app, teens can build their portfolio, earn dividends, and walk towards financial growth.
However, unlike most investment apps for teens. Ally Invest does not support fractional shares in all cases. This can be limiting for young investors, especially when it comes to diversification of a portfolio. Overall, Ally Invest is a solid option for parents looking for a low-cost and reliable investing platform for their teens.
8. Stash
Stash easily fits into the category of one of the best investment apps for teens, largely due to its simplicity. To use the Stash app, the teen’s investment account will be set up as a custodial account managed by the parent or legal guardian. This means the account will be opened in the child’s name but managed by the guardian. While the account and asset legally belong to the teen, they are to be under control until the teen reaches adulthood, which means they must be between 18 and 21 years old.
The Stash app offers a diverse range of investment options, including stocks, bonds, mutual funds, and ETFs. After signing up, there are series of questions to guide you and your teen while helping you understand your investment preferences, risk tolerance, and financial goals. Based on the answers you provided, Stash will offer some investment options.
After all of this, you can link an external bank account to the stash account, which you can do via the app settings. After linking your bank account, you can easily transfer any amount to fund the Stash account, after which you can invest with any amount of your choice. Beyond investing for your teens, Stash offers services that can help your teens’ money management skills.
9. U Nest
Although it’s primarily an app that helps families invest for their children’s future, it can also be an excellent investment app. U NEST allows parents to make an investment in their child’s name. This can be done through a custodial account, and parents can carry them along as they use the U Nest app.
Using the U Nest app, parents can contribute monthly to building an investment portfolio for their kids. Likewise, friends and relatives can easily contribute to this account. Once the teen reaches adulthood, full control of the account can be transferred to them.
On the other hand, U Nest charges a monthly subscription of $4.99 for the starter plan and $9.99 for the Plus plan. This may be expensive to maintain for a small account balance.
10. Charles Schwab
Charles Schwab offers teens the opportunity to grow their money at an early stage through a custodial account. This custodial account allows parents or guardians to invest on behalf of their teenager. It’s one of the best investment apps for teens as it is set up under the UGMA/UTMA rules. This means that while the adult manages the account, the assets belong to the minor. Once the teen comes of age, the account is handed over to them.
With a Charles Schwab account, teens can invest in U.S. stocks and ETFs with no account minimum, maintenance fee, or commission on trading. Aside from this, Schwab offers a wide range of investment options, including ETFs, mutual funds, and bonds, as well as numerous educational resources.
Unlike some app that allows withdrawals for the benefit of the teen, Schwab does not. Once the money is deposited into the account, it cannot be withdrawn until the teenager is old enough to decide what the money should be used for. Likewise, until the age of transfer, the teens are limited in their involvement when it comes to making decisions about the account.
11. Webull
Unlike most teen investment apps, Webull does not allow teens under the age of 18 to sign up in their name. Likewise, Webull does not have a custodial account. This means that only teenagers aged 18 and 19 are eligible to use the app. On a positive note, Webull is a good investment app for beginners and can help teens in making their own investment decisions while learning about wealth.
For teens under the age of 18, a good alternative is for their parent or guardian to open a standard brokerage account while teaching them about investing. When the teenager turns 18, the investment can then be transferred into their name.
Additionally, Webull offers a free paper trading feature that enables anyone, including teenagers, to practice buying and selling stocks. This offers good financial education; this way, teens can learn how the stock market works without exposure to financial risk.
12. Vanguard
Vanguard is one of the household names in investing, with a long track record of efficiency. It is best known for its low-cost index funds and encouraging long-term, passive investing strategies. By opening a custodial account for their teens, parents can give them a head start in building wealth and financial wellness.
Parents can open a custodial account like the Vanguard Personal Investor in Australia and the Junior ISA in UK with their existing Vanguard account. With any of these Vanguard accounts, you can access different stocks, bonds, Vanguard mutual funds, non-Vanguard mutual funds, and ETFs. Additionally, parents can manage their teens’ investments, set up regular contributions, and provide overall guidance on investing through Vanguard accounts.
13. Merrill Edge
Merrill Edge offers a custodian account, which is a smart way for parents or guardians to invest on behalf of their child. The account is transferred once the child reaches adulthood, depending on the location. Using the Merrill Edge custodial app is a good way to save and grow money for a child’s future.
The Merrill Edge stands out in so many ways, with no minimum balance and zero maintenance fees. Custodians can choose from a wide variety of investment options. This includes stocks and ETFs, bonds, mutual funds, and even annuities, with zero trading commissions on stocks.
Conclusion
Helping your young ones kickstart their financial journey is a beautiful thing any parent can do for their teen. To secure your child’s financial future, you can put them on some of these best investment apps for your teens. Watch out for apps that are teen-friendly, where youngsters can learn how to manage money and make informed investments as they build their investment portfolio.
