Empowering Young Investors: How to Teach Your Kids about Investing (with Drip's safety controls)
Want to teach your teen about investing but not sure where to start? You're not alone! Investing can seem intimidating and complex. But with the right guidance and tools, the learning experience can bring lifelong value. Here's how to get started:
First things First: Drip's Investment Request Feature
Drip is designed with parenting priorities in mind. One of its key features is the investment requests that under 18s make to parents. Here's how it works:
- Explore & Research: Your child can explore up to 15 investment options in the Drip app.
- Make an Investment Request: When they find an investment option they would like to "drip" or make an investment request in, they can do this easily, triggering an instant notification to the parent.
- Parents Approve (or Not): You, as the parent, can decide whether to approve it or not. This gives you the control and final say over the investment decisions.
Drip fosters open communication between you and your child about investing decisions. It also allows you to share your knowledge and enjoy the learning journey together.
Parental Controls: Your Limits, Their Learning
In addition to investment requests, Drip offers parental controls that give you additional peace of mind:
- Account Monitoring: You can easily monitor your child's portfolio and track its progress.
- Spending Limits: You can set limits on how much your child can request at a time.
- Minor visible options: You can choose what investment options they can view and have access to.
Why Learning by Doing is Key
Everybody knows there's no substitute for the real-world experience when it comes to learning a new skill. Investing small amounts ofmoney with Drip allows you and your child to:
- Understand Risk and Reward: They'll see firsthand how investments can go up or down in value, teaching them about the importance of diversification and long-term thinking.
- Develop resilience: Even small losses can be valuable learning experiences, helping kids practise patience and developing a sense of responsibility.
- Develop Confidence: Seeing their investments change over time can be a huge motivator, boosting their confidence and interest in finance.
The Bottom Line
Teaching your child about investing doesn't have to be scary. With Drip's parental controls and your guidance, it can be a fun and rewarding experience. By starting early and learning by doing, your teen will develop valuable financial skills that will benefit them for a lifetime.
Ready to empower your teen with financial knowledge? Download Drip today and start their investing journey!
This information was prepared by Drip Invest as part of BetterLabs Pty Ltd (ABN 26 620 505 615, who is an authorised representative of Cache Investment Management Ltd (ACN 624 306 430 AFSL 514 360) (Cache). Cache Multi-Class Investment Fund is issued by K2 Asset Management Ltd, as disclosed in the Product Disclosure Statement (PDS). All information is general information only and does not take into account your personal circumstances, financial situation or needs. Before making a financial decision, you should read the relevant PDS and Target Market Determination (TMD) to consider whether the product is right for you and whether you should obtain advice from a professional financial adviser. All investments carry risk.
