Investing in Stocks for Kids

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When investing in stocks for kids, consider taking more risk than normal, find a company that has good growth and a lot of potential, and utilize the lower tax bracket for children. Invest in the stock market for a child's future with help from an investment portfolio manager in this free video on investing and personal finance.

Part of the Video Series: Investing & Personal Finance Tips
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Video Transcript

OK, investing in stocks for kids. When you're investing stocks for, in the stock market for kids, one of the biggest advantages you have is a long time horizon, not someone who's got ten years to, needs to make this money quickly. And if you start, the younger the age, the better, more chance they have to ride the up and down's in the market. But, investing in stocks for kids really, one of the standard recommendations is to take a little bit more risk than maybe you might yourself, only in that there is, if there is a serious upside potential, it's a good company, it's a well managed company, you're not taking unnecessary risk, there is really a great time horizon there to, to make more money. And if you feel that the money should be a bit more secure, maybe it's not for say, the kids retirement account, or something to buy a house with later on, it's something for a more immediate need, then I would pull in the, the risk a little bit. But again, with all kids, you really have that length of time to invest, and the, the other thing is to is that they have a very low tax bracket. Most children aren't making that much money, so they do have that advantage over the rest of us.

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