Introduction to a Brokerage Account for Kids and Teens
This video explains the concept of a brokerage account in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about brokerage accounts, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Kindergarten
- Elementary School
- Middle School
- High School
The topics covered are:
- What is a brokerage account
- How is a brokerage account funded
- Fee for opening or maintaining a brokerage account and commissions
- Getting the money when you sell a stock or bond
- Is the money in the brokerage account safe
- How do you open a brokerage account
Howdy Wall St. Willy! I heard my parents talking about a Brokerage Account. But…
What is a brokerage account anyway?
A brokerage account is an account that you use to make investments like buying or selling stocks, bonds, mutual funds, ETFs and many more.
Where does the money to buy stocks or ETFs or the other things come from?
You have to fund the brokerage account from your checking account or savings account.
This means you take money out of your checking or savings account and deposit or put that money in your brokerage account.
Is there any fee for opening or maintaining a brokerage account?
There’s usually no fee to open the account. But some brokerages do charge a yearly fee, which is a fee that you pay every year for being able to use the brokerage account.
But some brokerages also have a minimum amount of investment that’s required. That is usually $1000 to $2500.
Well, do you pay any other fee in a brokerage account?
You do pay commission for each trade, which means buying or selling stocks, bonds or other things which is usually between $5 and $9 for each trade.
Well, how do you get the money when you sell a stock or bond or any other things?
The money comes into the brokerage account when you sell them.
It can be transferred into your checking or savings account just like you transferred it to the brokerage account from your checking or savings account before you made the investment.
Is the money in the brokerage account safe?
When the brokerage is registered with the Securities Investors Protection Corporation or SIPC, each account is insured for up to $500,000.
So, if your brokerage is registered with SIPC, your money is safe as long as it’s under $500,000.
Well, what are some of the popular brokerages?
Some of the popular brokerages are Charles Schwab, Fidelity, TD Ameritrade, E Trade, Vanguard and many more.
How do I open a brokerage account?
It’s fairly simple and easy to open a brokerage account.
It can be done online in less than 10 minutes by visiting the brokerage website.
Thank you very much for telling me about a brokerage account, Wall St. Willy.
You are welcome, Sooper Cooper. Remember, Finance is Your Friend!
Video Featured in the Below Financial Literacy Course for Kids & Teens
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What is a Brokerage Account?
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
All you need to know about a Brokerage Account: what is a brokerage account, where does the money to buy stocks etc come from in the brokerage account, is there any fee for opening or maintaining a brokerage account, how do you get the money when you sell a stock or bond or any other things, is the money in the brokerage account safe or is insured, how can you open a brokerage account, and more.
Show notes and transcript at: https://easypeasyfinance.com/what-is-a-brokerage-account/
