with this new wave of planning investments, not only the millennials but also teenagers are exploring their investment options and hey, it’s something to encourage. we young adults, teens, Gen Z or whatever it is that we hear these days, need to be more informed to make financial decisions for ourselves in the future. there is no need to go like, “oh, where should i invest the money as a teenager?” anymore.
with growing exposure to stocks, investments, cryptocurrency, etc., you are surely super confused on where to begin your investment plan from. so, we‘ve broken it down for you. begin by understanding the process of different types of investments and then jump into splashing your money on their investment platforms.
so, let’s answer the most common question of “where should I invest the money as a teenager?”
you can start investing as teen money on various platforms, however, only under the guidance of an adult – be it your parents or your legal guardian. to transact investment money, you need to first open a custodial account with your guardian till the age of 18.
5 ways to invest as a teenager
- mutual funds
- cryptocurrency
- savings account
- stocks
- investing in business ideas
check out how akudo can help you open a custodial account. once that is done, here are top investment options for a teenager and student to go wild with:
1. mutual funds
investing in mutual funds through SIP is a great option for youngsters like us as it does not demand a huge amount of investment in one go. you can invest a nominal amount on a weekly, monthly or yearly basis at your convenience. enjoy the magic of compounding and reap the benefits by holding it for the long term.
2. cryptocurrency
well, this is the new eye-candy in town for the youth. this investment opportunity spread like wildfire over the past few years. with several crypto investment apps like Coinswitch Kuber, CoinDCX, WazirX, etc. cryptocurrency has become accessible to all. but study the crypto market and regulations before leaping into it.
3. savings account
the catch here is that as a teenager, you cannot have your own independent savings account. so as mentioned above, catch hold of your parents or guardians and open up an account under their guardianship. You can then start your own neobank account with akudo to learn, earn, spend and invest. simultaneously you earn interest on the amount in the account and once you’re 18, operate it without any dependency.
4. stocks
before dipping your toe into the stock market world, research the companies you want to invest into. understand the economy and the past histories of the shares. it is a risky game, but hello, the gains are worth it if played safely. get yourself an adult who is an old player of the game and learn the right tricks.
5. investing in business ideas
giving an idea a boost through your investment could reap amazing returns. however, you need to be careful of scams and short-term plans. understand the whole business model by having an expert adult look into it and guide you.
Best apps for saving and investing money as a teenager
now that we know the types of investments students and teens can look into, you should be aware of the efficient platforms to learn and invest on. however, don’t forget, you still need an account under an adult’s guidance.
1. akudo
it is very important to know about financial trends before making any big decision, right? With akudo, you can not only make your financial decisions with a prepaid debit card, but also be a teenager learning about investments and finances at the same time. the learning never ends at akudo.
2. Groww
Groww is an informative app to invest and sell in mutual funds and monitor the future of your investments. you can explore the best mutual funds scheme for yourself and future goals at one place.
3. Zerodha
Zerodha has proved to be one of the most popular investment apps in India because of its zero-brokerage fee. users can invest in multiple options from currencies to IPOs and mutual funds.
3. Coinswitch Kuber
the leading cryptocurrency investment app in India. buy, sell and withdraw coins from all over the world on this one app. to invest as a teen, you need to be updated with the latest dips and rise and act accordingly. you can do just that with Coinswitch Kuber.
4. Upstox
this app has everything from low brokerage costs to learning centres about different investment opportunities. this is your one-stop solution for everything on investments as a teenager.
faqs for investing and saving as a teenager
1. What are the top investing apps for teenagers?
some informative investing apps are Groww, Zerodha, Upstox for stocks & mutual funds and Coinswitch Kuber for crypto trading.
2. where should I invest my money as a teenager?
some of the best options for teenagers to invest in are mutual funds through SIP, stocks, savings accounts and crypto as per market trends.
3. what to invest in as a student?
students should prefer investing in mutual funds, SIP and also some in higher risk and higher returns products like cryptocurrency
4. can minor invest in a mutual fund?
minors in India can invest in mutual funds. however, they need to have a custodial bank account with an adult for transaction approvals until they are 18 years old.
5. how to earn money at the age of 16?
teenagers can earn money through various sources like part-time jobs, investments and pocket money. part-time jobs can include blogging, YouTube videos, freelancing or working at any eatery outlets and much more.
6. what are the best stock trading apps for minors,18 and young adults?
Some great stock trading apps for teens, minors and young adults are Zerodha, Upstox and 5paisa. these apps provide information on stocks and charge the lowest brokerage fees.
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