In the 90s, savings accounts were a profitable resource for parents who wanted to make an investment for their children. It was possible to deposit a small amount and it yielded considerable amounts, which does not happen nowadays. So how can you invest in your children’s future so that this value has good returns? With this in mind, we wrote this article to answer the main questions about investments for minors.
How to make an investment as a minor
Certainly, worrying about the future is an excellent thought and learning how to deal with money is fundamental from childhood. Financial education helps children deal with adversity on a daily basis, so teach them from an early age.
Firstly, teach them how to deal with money so they can become adults who are aware of their spending habits and know how to deal with money. Therefore, the thought of making an investment will be something more uncomplicated.
First investment steps:
When checking your child's opportunity and initiative to invest money in his future, encourage him to work towards it. Most teenagers start their financial lives through small sales, so support them.
Stimulus:
Support your child to continue on this path to the point of acquiring enough money to make the investment. Another opportunity for teenagers over 16 is the apprenticeship, in which they can invest an amount that they themselves worked to earn.
Open an account:
Subsequently, open an account with an investment brokerage, especially if you have no experience in the financial market, this way, your chances of success are increased.
The opening of the account will depend on a responsible person who will be the legal guardian before the law. The investment account will depend on their guardians as they are minors, however, the choice and freedom to invest will depend on the minor.
Do not restrict how you should invest your money as each experience is valid and helps your personal growth.
Child Investing Documentation:
Like other accounts, the investment account depends on some documents. It's a pretty simple process.
First of all, the account can only be opened in the name of the minor if he or she has a CPF. In addition, you will need documents such as an identity card and a value to start the investment.
Remembering that the documentation must be from the minor and a legal guardian. If you open the account through websites or applications, you must send photos in possession of the documents in order to avoid fraud.
Investment choice:
After opening the account, the minor will have several investment models at their disposal. The choice must be based on the minor’s investor profile. The minor will be able to invest in Treasury Direct, Fixed Income and even in Shares, for example. Only in the Future Market it will not be possible to apply as these are only for adults. This is due to the high risk of this type of investment. Direct the money to the chosen investment and that's it.
It is worth mentioning that, after making the application, you must follow it to check how your income is going. Also note the deadlines for each application.
The market has several investment agencies, check the ones that interest you most. Some of these agencies do not charge some fees, however, when investing in Shares, there is an incidence of IR, so be careful.
In conclusion, investments are the best way to make money as savings are no longer an investment option, being considered only an emergency fund. Applications can be made with amounts starting at R$100.00. Check out the list of investments and good returns!
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