EarlyBird lets you buy stock on behalf of your kids

Fintech startup EarlyBird offers clients a unique service – shares as a gift. Parents can now give securities to their children by investing in them through a special app. All transactions take place in the child’s name.
EarlyBird provides a convenient share management system. The account is opened for a child of any age. Up to the age of 5, the account is managed solely by the parents; after that, up to 13, they can learn how the app works in browsing mode. This allows you to introduce children to the basics of investing, to teach them the proper use of funds and their control. From the age of 13, the child can make their own stock or bond purchases.
In addition, the EarlyBird app allows children’s relatives to make gifts aimed at their future financial well-being. Relatives can transfer money to the service, and it can be done as a postcard or a video clip.
The fintech company is regulated by U.S. law, which controls the transfer of assets to minors. According to it, the securities in the child’s account will remain until he or she reaches the age of majority, after which he or she will have the right to conduct investment activities independently. At the same time, operations and management of shares or bonds are carried out by parents or guardians of children.

child-1The service has already become popular in the U.S. and has attracted the attention of many investors. Now fintech developers are working on expanding the app’s features. They want to add the ability to donate money for a child’s education, and place it in the account under the terms of the 529 plan. This program offers a tax deduction for funds that are set aside for college or university tuition. In this case, the account is not subject to government fees, and depositing or withdrawing funds is exempt from mandatory taxes.In the U.S. and European countries it is quite common to open an account for their children’s future or create an investment portfolio for them. As for Russia, this is still a sporadic practice, but for parents who are interested in this issue, consultants can give some advice.
One of the options for building capital for a child is the stock market. Here you can buy profitable securities with minimal investment. The first thing to start with is opening a brokerage account. The best option would be to register it in the name of the parent, and when the child reaches adulthood, the assets will be transferred to his account through the deed of gift.
When forming an investment portfolio, it is better to pay attention to the long-term prospects. Therefore it is important to assess all risks, reliability of the company and its growth over the next 5-10 years. For beginners, investing in funds is suitable, such investments do not require deep knowledge, and the capital will change, according to market trends.