Investing for Kids
This article is not for the parents who want to invest for their kids. This article is for kids who want to learn the game of investing. “Investing for Kids” means Investment exercises for Kids for the purpose of this article.
Ok so are you a School or High School Going Kid & want to learn how to invest money? Than this article is for you. Let me tell you honestly that when I was a Kid and I used to say my parents that, I want to learn how to invest money, they used to say me that, Investment is not a game of kids because it’s risky. Once you grow mature, you learn what is investing and start investing.
But well, this was a Myth. The only problem of following my parents’ advise is that, you will be very late by then and Investment is a game of money & time both. And the winning formula of successful investing is - “Start Early”. Warren Buffet has started investing in the stock market when he was just 13 years old and today at the age of 80 years he is the second richest person of the world.
Here are the various ways by which Kids can invest money -
01) Stocks & Mutual Funds: Kids and teens under the age of eighteen cannot acquire most investments directly. They can, however, own them through a UGMA account or some other type of trust.
But yes, it is possible to invest in the stock market and mutual funds via UGMA account if you are a kid. Simply subscribe some finance blog and start learning about stock market investing.
02) Domain Names – Yes, Domain Names. I know that your parents will surprise if you tell them that you are investing in Domain Names. But believe me, Domain Names are the real estate of the Internet and they are the most valuable properties on the Internet. The Domain name Loan.com was sold for whooping US $ 3.1 Million in 2001. So you can imagine that how profitable this asset class is.
Simply go to GoDaddy.com and buy a Domain name for you. It costs just US $ 10
03) Invest in Web Properties (Blogs, Websites, Forums) – Flippa.com & SitePoint.com are the Internet marketplaces for web properties. Here you will find a web property for sale starting from as low as $ 100. Web Properties are the Information age Investments which give much higher return than the traditional offline assets such as stocks, bonds, gold and real estate.
04) Invest in Collectible Items – Yes, Collectible items are also the form of Assets such as Stamps, Coins, Coke Crowns, Vintage Cokes, Vintage Toys, Clocks, Knives, Insects & many other collectible items.
Thus, you can start investing in any one or more of the above assets. Most of the people around the world believe that only stocks, bonds, gold, real estate and mutual funds are the assets to invest but it is not true. All of the above assets can be the great investments for Kids & Teens.