For those who wonder how to make money as a teenager, investing responsibly is an excellent option, as long as you understand how the financial market works and select the right products for each profile.
It has long been believed that the field of investments is reserved exclusively for adults. However, this is not entirely true. Young people also have the opportunity to participate in this financial environment. However, they should be aware of the most appropriate investment options and understand their dynamics in order to minimize unnecessary risks and ensure a proper learning process.
Financial education: The first step in learning how to earn money as a teenager
The investment boom is global and today no one is exempt from being part of this phenomenon. With the rise of the Internet and almost unlimited access to information, people, even from an early age, are exposed to stimuli related to the financial sector.
This constant flow of information, driven by the emergence of trading, cryptocurrencies or specialized influencers in the field, has aroused the curiosity of many young people, who are looking for how to make money as teenagers and begin to explore the opportunities that the world of investments offers them.
The first thing they should know is that in order to enter the market, it is also important to work on financial education, which can be cultivated from an early age. When investments start at a young age, not only capital growth is encouraged, but also the development of key skills such as planning, risk management, among others.
Our recommendation is that, if a teenager wants to earn money through investment, start with the following products that we will discuss in the next point, of course, always under the supervision of an adult.
What investment products are accessible for a teenager to know how to make money?
Today, there are investment portfolios designed specifically for young people to learn how to make money as a teenager. One of the most accessible options are the savings portfolios offered by roboadvisors, these automated platforms manage investments efficiently.
Increasingly popular in Spain and the European market, roboadvisors take care of all the management of these savings portfolios, allowing the teenage investor to have a balanced portfolio aligned with the investment objectives he/she expects.
Their main features are:
- Accessibility: If you are interested in discovering how to make money as a teenager, roboadvisor offers you products adapted to this profile and the most accessible professional investment management, so you can get started in the market and start generating income. Thanks to automation, it facilitates the investment process, allowing everyone to invest with confidence.
- Diversification: In investing, you don’t have to put all your eggs in one basket. With a roboadivsor you can spread capital across a range of assets: Standard Index Funds or SRI, as well as Currency Funds, which reduces the risk of loss and benefits performance.
- Low costs: Automated investment platforms do not require a team behind them to operate. This eases investors’ burdens and lowers trading costs, making it an attractive option for teenagers to make money.
- Automation: While it is crucial to start early with financial education to better understand how the market works, roboadvisors use advanced algorithms to manage investments efficiently, allowing teens to invest without the need to be constantly involved in the process.
Discover How to Make Money as a teenager with inbestMe’s Kids Account
In Spain, minors cannot invest directly in the stock market, as the law reserves this capability for individuals over 18. However, teenagers can participate in investments through accounts managed by adults, such as the inbestMe Kids Account.
What is the Kids Account?
The Kids Account is an investment portfolio designed for minors, where the teenager is the account holder, and an adult (parent or legal guardian) acts as the authorized person until the minor turns 18. This account allows investments in Standard Indexed Funds, SRI Indexed Funds, or Monetary Funds, ensuring diversification and low costs.
Benefits of the inbestMe Kids Account
- Accessibility: Open an account with a minimum of €1,000.
- Low Costs: Management fees capped at 0.41%, similar to other inbestMe portfolios.
- Flexibility: Tax-free transfer of funds in the minor’s name from other entities.
- Customization: Portfolios tailored to the profile and goals set by the adult.
- Automation: Regular updates by inbestMe’s Investment Committee at no additional cost.
Kids Portfolios Composition
- Under €5,000: Composed of 2 globally diversified funds selected based on the profile.
- Over €5,000: Up to 16 funds with ultra-global diversification.
- Savings Portfolios: Composed of 2 or more Monetary Funds.
Opening Process
Opening a Kids Account with inbestMe is straightforward and 100% online. During registration, you’ll complete a short questionnaire to define the investment profile based on the minor’s needs. The authorized adult will answer questions about objectives and financial status. Once registered, the minor’s account is managed under the adult’s supervision.
What Happens When the Minor Turns 18?
When the minor reaches adulthood, the account is transferred to their full control. The adult will receive a notification to create a new user account for the young investor, who will validate their details and assume direct management of the portfolio.
With the inbestMe Kids Account, teenagers can start investing responsibly and develop financial knowledge early on, always guided by an authorized adult.
