Teen Money Tips - Investing for minors

If you are under the age of 18 (or 21) depending on where abouts in the world you live then you are considered a minor. This means that there are certain things that you can't do and the bad news is investing is usually included in this. The reason that "minors" cannot invest is because they are not at the age where they can legally sign a contract.

This then leaves so called "minors" wondering how on earth they can acutally invest in the sharemarket, or in commodities/precious metals, or even property. Well there are ways that minors can invest so today we will look at ways minors can invest in the sharemarket.

Firstly, you need to understand that the sharemarket is not a way to make money quick! Unless you are extremely lucky, or have relatives who are experts at picking quick growth stocks/shares, you would be better to invest in large companies that experience slow growth. This way your money is safer and you learn the basics of the sharemaret - when you get more experienced you can actively stock pick with better knowledge.

Now for a minor to invest this usually requires an adult (usually parents) to either set up a "custodial account" (the adult sets it up and checks it over but you do the investing) with a stockbroker, or you invest through their own account but pay them the money for the shares.

So there you have it, there is the basic way that a minor can invest in the sharemarket. In future posts I will cover different types of shares and various investing strategies!

Thanks for reading!