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Best Investing Apps to Set Up for Your Child

As parents, we’re used to managing our kids’ needs—from snacks to screen time. But what about their financial futures? It might feel early, but introducing your children to investing while they’re young can set them up for success.

Sure, the idea of handing over investment responsibilities to your kid might make you pause. After all, a recent PR News Wire survey revealed that 43% of kids turn to social media for investing advice, and 25% are interested in cryptocurrency (cue concerned parent look). But don’t worry—there’s good news! Kid-friendly investing apps are here to save the day.

In this guide, Granola Baby explores what investing apps are, the features to look for, and a roundup of the best options to help your child become financially savvy.

What is an Investing App?

Investing apps are downloadable or web-based platforms that make it easy to invest in financial markets. Think of them as your modern-day broker, minus the suits and steep fees. With just a few taps, you can invest in stocks, ETFs, bonds, or mutual funds—all while managing your investments from an intuitive dashboard.

In the past, investing meant meeting with a stockbroker and paying hefty fees for their expertise. Now, these apps make it accessible for anyone with a smartphone to get started.

Why Start Kids with Investing Apps?

Investing apps are a gateway for kids to learn about money management and planning for the future. Here’s why they’re a game-changer for young investors:

  • Easy Access: No brokers, no complex setups—just a straightforward app interface.
  • Early Financial Habits: Studies show kids start picking up financial habits by age 7. Starting young pays off.
  • Parental Control: Custodial accounts let you oversee your child’s investments while giving them room to learn.
  • Tax Benefits: UGMA/UTMA accounts offer tax advantages and can be used for any purpose, unlike restrictive 529 accounts.

Features to Look For in Kids Investing Apps

Finding the right app can feel overwhelming, but focus on these essentials:

  • Cost: Free apps are great but may lack advanced features. Opt for apps with reasonable fees and solid functionality.
  • User-Friendliness: You’ve got enough on your plate. Choose an app that’s simple and intuitive for both you and your child.
  • Parental Controls: Look for features like spending alerts and approval options to keep their investments safe.
  • Accessibility: Some apps allow kids to start small while you maintain oversight.

How We Evaluated Investment Apps

  • Ease of Use

    We note to see which apps are the most straightforward to use for parents.

  • App Features

    What app features will allow you to grow your child's account the most?

  • Publisher Crediblity

    Some app developers are better than others and we keep this in mind.

  • Price

    We kept affordability in mind, knowing that not all apps charge the same price.

Granola Baby's #1 Overall Choice

EarlyBird

EarlyBird is an app designed to simplify gifting investments to children. It emphasizes the importance of long-term investing through custodial accounts (UGMAs) and allows family and friends to contribute to a child's financial future.

Highlights:

  • UGMA Accounts: Offers custodial accounts that parents manage until the child reaches adulthood.
  • Gifting Contributions: Family and friends can gift funds directly to the child's account.
  • Video Messages: Gifting can include personalized video messages, making it a sentimental gesture.
  • Pre-set Investment Portfolios: Provides pre-built portfolios based on the child’s needs and parents’ risk tolerance.
  • Educational Focus: Encourages long-term financial planning and education.

Pros:

  • Easy for others to contribute, fostering community involvement.
  • Intuitive and beginner-friendly for parents.
  • Adds a personal touch with video gifting.
  • Helps teach children about investing early.

Cons:

  • Limited investment customization compared to broader platforms.
  • Focused mainly on ETFs, lacking individual stock options.
  • Custodial account rules mean funds belong to the child at adulthood, which may lead to unintended spending.
Learn More

#2

Greenlight

Greenlight is a versatile app aimed at financial literacy for kids, combining a debit card, allowance management, and the option to invest in individual stocks and ETFs under parental supervision.

Highlights:

  • Comprehensive Financial App: Includes spending, saving, earning, and investing features.
  • Stock & ETF Investing: Parents approve trades, allowing children to learn about investing.
  • Financial Literacy Tools: Educational resources help kids understand money management.
  • Customizable Allowances: Allows parents to automate allowances tied to chores.
  • Parental Controls: Parents retain control over spending and investing decisions.

Pros:

  • Broad financial education beyond investing.
  • Interactive experience for kids to manage their money.
  • Investment options include individual stocks, which is rare for kid-focused apps.
  • Parental oversight ensures safe financial learning.

Cons:

  • Monthly fee ($4.99–$14.98) depending on plan.
  • Primarily geared toward older children who can grasp investing concepts.
  • Debit card features may distract from investment focus.
Learn More

#3

Ally Invest

Stockpile is a stock gifting and fractional investing app that allows users to buy fractional shares of individual stocks, ETFs, or gift cards for stock purchases.

Highlights:

  • Fractional Shares: Buy small portions of stocks or ETFs, starting as low as $5.
  • Stock Gift Cards: Enables gifting of stocks through personalized gift cards.
  • Broad Investment Options: Access to individual stocks, ETFs, and some crypto.
  • Custodial Accounts: Parents can set up and manage accounts for kids.

Pros:

  • Wide variety of investment options, including big-name stocks.
  • Low entry point with fractional shares, making it affordable.
  • Simple gifting process encourages investment-focused giving.
  • No monthly subscription fees (charges per transaction).

Cons:

  • Transaction fees of $0.99 per trade may add up with frequent trading.
  • Limited educational tools compared to other platforms.
  • Lacks features for overall financial literacy or chore-based allowances.
Learn More

Why Teach Kids About Investing?

Investing isn’t just about money—it’s about patience, discipline, and long-term thinking. It equips kids with financial literacy and prepares them for future success.

Books like The Little Book of Common Sense Investing by John C. Bogle and resources like Investopedia can be excellent tools for parents and kids alike.

FAQs

Why invest early?
Starting young allows kids to benefit from time and compound interest, building financial freedom as they grow.

Can kids have their own investments?
Legally, minors can’t open accounts on their own. But parents can set up custodial accounts to invest on their behalf.

Why is investing good for kids?
Investing teaches budgeting, saving, and responsibility. Plus, it builds a financial cushion for their future endeavors.

Introducing your child to investing might just be one of the best gifts you give them. With the right app and guidance, they’ll be well on their way to becoming financially independent.

Explore the options above and help your little one take their first steps toward financial empowerment!

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