Welcome to another “Tuesday Tip Jar” where I will share awesome savings and financial tips as I find them. I might not have something for you every Tuesday, but when I do, you’ll find it here!
If you’ve got a financial tip you think others would benefit from, please send it to me via my contact page at the top of the blog!
Quick Tip Jar Follow-Up: A few weeks back I posted about a government run service that allowed you to search for and reclaim lost money. At the time I was somewhat skeptical, but today I got two checks in the mail for both of my claims!
So if you’re in need of a bit of extra cash (or even if you aren’t), go read that post and find out if you have missing money owed to you. All the credit goes to David Bach and his readers for turning me on to this rad site!
Today’s “tip” is going to be a bit odd in that I haven’t actually even fully tried it out to see if it works yet as well as I hope it will. Here’s the story:
Part of the lesson my wife and I have learned being in debt is that we never want our children to find themselves in this kind of situation. While the goal is to be able to help them financially one day if needed, we’d very much prefer to instead just simply teach them how to never need help!
Part of this lesson comes in the form of teaching them to invest their money, and so I’ve been on the hunt for a good investment app that frankly skews a bit towards kids. Now obviously kids can’t go around buying stock in Starbucks or Tesla, and they need a parent or some other adult to do it for them. So you need what is called a “Custodial Account” where an adult buys the stock for the kid and helps them build a portfolio, and then when the kid turns 18, they get the investments turned over to them.
Kind of like the nerdiest beer purchase for underage kids of all time.
But not all apps allow for this, and the ones that do are often so dry that your average kid isn’t going to be interested in paying attention to their cold design. So I started asking around and doing some research, and it shook out to 3 frontrunners…
Here is what I’ve checked out:
Robinhood: I love this app, and have been using it myself for a few months. I even sang it’s praises in a previous post. It’s 100% free to use, and has some really nice tracking and recommendation touches that make it a good app all around. The problem is that Robinhood openly states that they do not have Custodial Accounts, but “may offer them in the future.”
Loved: This is an odd app, as from a distance it seems perfect. It looks to be built with kid investing in mind, and overall looked like a winner. However they have very few followers on social media, have broken links on their site and very few app reviews. I got a weird feeling and decided it wasn’t worth trying, but if you know otherwise please let me know in the comments below.
Stockpile: This was recommended to me by a couple of David Bach’s readers, and I reached out to the company directly via Twitter to ask about my specific situation. Turns out you can use the app for exactly what I had hoped: I as a parent can create an account for my child and invest for them, and they in turn can track their investments on their phone! I have downloaded the app and started through the initial process, and it seems very intuitive. I haven’t invested just yet because I have to figure out what in the hell I did with my kid’s Social Security Card, but I’ll update when I do.
UPDATE 07.16.19 – We got Stockpile fully up and working now, and it does exactly what I would hope it would do. If you’re looking to do something similar to what I’ve described, this is the best option I’ve found by far!
So for me, the clear winner is Stockpile. While I still like Robinhood a great deal for it being 100% free, Stockpile will be the app I use to get my kids into the world of investing money and building wealth!
Check it out for yourself at: https://www.stockpile.com/
Now all I need to do is a grow a mustache, buy a rusty Trans-Am, and wait outside of the 7-Eleven for some hoodlums to pay me to buy them some beer so that I can invest it for my kid!
I’m TOTALLY kidding. Lighten up, people.
I’d wait outside of an AM/PM.
Found an app that works even better than Stockpile for helping kids invest? Let me know about it in the comments below!