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Learning to invest at an early age can really set teenagers on the right path financially and it doesn't have to be boring!
Financial planner Matt Logan shares a few fun ideas to get teens into investing!
The first step is picking the type of account. If your teen is old enough to work, one option is a ROTH IRA.
Logan says this account lets them put up to $5,500 dollars per year or however much they earn, whichever one is smaller in the account. It lets them put money away tax deferred. And if they take out the money at 59-and-a-half years-old, the money would not be taxed.
Another option is a traditional stock account. Logan says this account gives your teen access to the money and they don't have to worry about retirement age specifications.
And if you're looking to open a smaller type of account, consider an online brokerage account. Logan says you can start by putting in a low minimum amount of money. And transactions are going to be much lower than if you go with a traditional brokerage account with a firm.
Logan also says you don't want to have too many options. Keep it down to two or three companies to invest in.