Disclaimer: It’s illegal for your kids to trade under your name. Robinhood does not endorse this and might want this taken down.
I couldn’t find anything online to help Parents get their kids started on actual stock trading for juniors, so I decided to write one myself.
When I was a kid, I had to beg my dad’s best friend to buy me one share of IBM with his broker. Today’s kids get to make deep OTM call options on parabolic tech companies from their iPhone with unlimited leverage, using their lunch money. What a time to be alive!
Disclosure: If your kid doesn’t have access to an ipad/iphone, then that’s an additional $200. Making this project’s total $250.
Instructions:
Step 1
Buy a used iPad/iPhone for under $180 on Amazon/Ebay/Offer up/Facebook Marketplace.
Step 2
Once you Download Robinhood app, go to the “Menu” page and find the “Transfers” tab. Once you click on it, select the second option that says “Transfer from Bank”. Click “Add Account”. You’ll see payment options like Chime, Schwab, and many banks. Unlink your account after adding funds so that you’ll have a clean slate. Unlinking it when you’re done is important so that the app doesn’t remember your account after you hand it over to the child.
Your kid can’t use a shared device since they are held responsible for what goes on it. You should supervise them, as they will be using the app under your name (That’s the only way to do it as of Mar 2021).
Let your kid decide how to spend the $50 on the app. The app is friendly enough that today any kid 10 years or older will know how to find what they’re looking for.
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FAQ
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- Why should you get them started early?
- News sources for Kids?
- What Stock can I suggest that my kid/student pay attention to?
- What if $50 doesn’t interest my kid in the Robinhood app?
Buy him a volatile stock. Like Tesla. Something that’s always on the news and better yet, with dramatic characters. Someone like Elon, Palmer Lucky, Thiel, and Kalanick. More characters here: Dorsey, Zuck, Larry Ellison, Martin Shkreli, John McAfee
Rule of Thumb: You want the first stock to be the most likely to have news for your kid in the morning. Elon smoked a spliff? Your kid sees Market movement. Shrkeli invented another breakthrough medicine? Your kid will be the first to find out in the morning. Ulbricht got out of fed prison and is already starting a blockchain evil empire with one silkcoin trading for $2? Your kid is interested, and thinks he/she can convince you to give them another $50 for it.
How to answer my concerns that my kid will be using my credentials and SSN on their IPhone?
- Monitoring: every week ask to borrow the phone, and with the kid supervising, run a quick Checklist (So as to not make the kid feel you don’t trust them). It’s just for legal because the kid is still using your own name. Checklist: 1) read all customer service chats 2) look at Recently added new bank accounts.
- Automated Sandboxing: The easiest app to set up for child protection is Norton Family. Every other option on the market is a little harder to set up (links below).
Links:
Every other option:
https://www.pcmag.com/picks/the-best-parental-control-software
Norton:
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Why should you get them started early?
- Reality check: Exposed to the realities of markets.
- Productive hobby: Even if your kid corrupt themselves by starting to day trade (Which means your kid is starting to troll the market). This is still one of the most productive things they can do with their time.
- Speed of learning: Kid is now connected to the world. And will automatically start finding channels to learn more. It will become part of the kids vocab. Parents reported their kids becoming Expert in the making in less than 6 months
- Profit: unlikely, but your Kid might actually make short-term profits. Making this one of the first legit profit they’ve made
- Healthiest Addiction: sorority parties? Forget about it. Your kid is on Reddit arguing with a lady twice his age on why Tesla stock will go up again next week. Your kid has seen way too many autopilot crashes on YouTube and now thinks its only a matter of time before the regulator crashes the party. You stare at him. Have I created a monster?
- And has stock in a piece of land on a small island 100 miles south of Hawaii
What are few news sources for kids to check out?
- Robinhood news (Found inside the app. That’s why you should let them have control over the device so that they can spend time inside the app)
- Bloomberg App (older kids can use the most trusted financial source I know)
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What stock can I suggest my kid/student pay attention to?
- Tesla
- Apple
- Pfizer
- Palantir