Investing apps for kids are on the rise, and there are good reasons behind it. Building a child’s nest egg, while teaching them financial literacy is every parent’s dream.
But how do you choose the right app if you don’t even know what you’re supposed to be looking for? While there’s no one simple answer because there are one-size-fits-all solutions, we can still help.
Today, we’re going to show you the benefits and features of popular investing apps for kids. Also, we’re going to break down the things to consider, along with safety concerns, and more. Let’s get into it.
What Is an Investing App?
In the simplest terms, investment apps are in-browser or mobile apps that let you or your kids invest in financial markets. They also allow you to manage your investments on the go and have complete oversight of what’s going on.
Depending on the app you choose, it’s going to have different features. But most apps should allow you to purchase investments like exchange-traded funds or ETFs, stocks, bonds, and more.
Once upon a time, but also not so long ago, you could only make investments by using a middleman, like a stockbroker. They would make trades for you and be the only ones to know how well or how poorly they’re doing. Not only would that take a lot of time, but it was also an expensive process.
Nowadays, thanks to the latest, cutting-edge apps, we’ve been able to cut out the middleman. Thanks to apps like BusyKid, parents and kids can simply unlock their devices, and with a press of a few buttons, buy, sell, and trade investments.
Benefits of Using Investing Apps for Kids
During the Covid-19 pandemic, investing apps saw a massive surge of new users. In 2019, there were roughly 51.9 million people using an investing app, but only two years later, that number rose to 137 million.
One of the biggest selling points for all investing apps is just how easy they are to use. Anyone who wants to start dabbling in investing can use one without having to go through extensive training. Investing apps for kids have particularly simplified the process, allowing kids to discover as they go.
Another benefit of using an investing app is just how much you learn while using it. Even complete beginners can easily get the hang of it, and within months, invest like pros. All of the good investing apps, like BusyKid, make the investing process as simple and as straightforward as possible.
Not to mention, investing apps, and apps in general, are just much faster than real-life processes. With an app, with one simple click, you can turn money into more money. You can also be in it for the long run, slowly building a portfolio, and watching your investments grow.
On the other hand, if you were to contact a stockbroker, you would not have any of these options. You’d have to put your complete trust and money in someone you don’t usually even know.
Lastly, and this is a pretty big one, investing apps are affordable. There are no exorbitant commission fees or hidden costs to be worried about. And more importantly, you aren’t paying anyone to press a button for you and to do something you’re capable of.
Things to Consider
Now that we’ve covered all the reasons you should be using investing apps for kids, it’s time to talk about the considerations. Here are our top three factors that will determine if an app is a right fit for you.
Ease of Use
Ease of use is as big of a benefit as it is a challenge. Finding an app that you can understand and engage with, as well as your kids, is not going to be simple.
Lots of investment apps on the market aren’t even geared toward kids or teenagers, but only adults. That’s why you have to ensure you find an app that is specifically designed to be used by children.
Otherwise, you will spend a lot of time and energy stressing and trying to figure out an app that wouldn’t even work in the first place. With your valuable time, don’t spend hours trying to make a transaction or make a simple investment.
Even though using an investing app is still going to be incomparably cheaper than going to a broker, price should still be a factor in the decision-making process. Without naming any names, some apps will not only charge large subscription fees but also charge you for every trade or payment you make. What’s more, sometimes, the maintenance fees alone can be greater than the subscription fee.
And it goes without saying, but is there something more disillusioning than when an app promises the world, only to deliver it in a premium package?
With BusyKid, you never have to worry about that! For only $3.99 per month, your family has access to our entire app! What’s more, we have a 30-day subscription-back guarantee and don’t charge any commission for selling or buying stocks.
Freedom of Choice
When we’re talking about freedom of choice in apps, we’re referring to the diversity of features and freedom to do what you want. Of course, before you commit to an app, you should consider your financial strategy.
Also, think about what you want to achieve with the app and how to go about it. Is the app only to teach your children financial responsibility or are you looking to get them seriously interested in investing? The app that you end up choosing should reflect all of your personal preferences and goals.
For example, if the goal is to diversify your kids’ portfolio, the app you’re using shouldn’t have limits on investment options. And if your strategy is to do all of the above, well, BusyKid is probably the best place for you.
Popular Features of Investing Apps
Apart from the standard buying, selling, and trading stocks, all investing apps for kids are different. The best ones will allow you to maintain your portfolio while working on your nest egg.
Safety and Security
The first thing that all the best apps have is a strong security feature. Like with any other banking or monetary app, the program should be impenetrable, with features like network defense and fraud protection.
Since we’re talking about investing apps for kids, they need to have another layer of security, and that’s called parental control. While it’s amazing when children express interest in investing, they still shouldn’t be doing it alone.
With BusyKid, parents and kids can track every transaction through the Activity Feed. What’s more, parents can lock the Save, Share, and Spend areas to ensure the best financial outcome.
The goal of any investment app is, of course, to earn profit and expand your portfolio. Ideally, you should be able to do that without having to pay over-the-top fees and commissions. Even though the fees might seem minor, over time, these microtransactions can rack up quite the bill.
You should also be able to experience the world of investing at your own pace. We give families the opportunity to do just that.
As we mentioned earlier, a huge part of investing apps for kids is about education and empowerment. You want your children to understand the value of money and that patience pays off.
But another important aspect of investing and earning is giving back. If you want your kids to understand the value of charitable giving, the app they’re using should reflect that.
Not only does BusyKid support charities and making a difference, we even have a special feature dedicated to it. With our app, kids can donate a percentage of their allowance or earnings toward an ever-growing list of charities.
With our app, you can also give out bonuses to your kids when you feel like they’ve earned them. Friends or family can give back to the children to show appreciation for a job well done.
To Sum Up: Best Investing Apps for Kids
No matter if you’re an investing pro or a complete beginner, getting your kids interested in it is a completely different ball game. The fact is, most kids, especially the younger ones, aren’t going to care that much about investing. Especially if it’s presented in a mundane and kind of boring way.
Since engaging your kids is the key to getting them interested, books and apps are the way to go. By finding a medium that children can understand and relate to, you’ve already won half the battle.
BusyKid will not only engage but also empower them and help them create a better relationship with money. Finances should no longer be a topic only left to grown-ups. By getting your kids interested in investment early, they’ll develop the right skills to guide them as they become adults.