Do you know of any fun youtube videos or websites aimed at kids that will help explain to my son in simple terms what investing is all about?
28 February 2022
Question by Moire
I want to teach my 8 year old about investing. I'm going to open an account for him and allow him to buy shares or funds with his pocket money. Do you know of any fun youtube videos or websites aimed at kids that will help explain to him in simple terms what investing is all about?
Answered by Holly Mackay
Hi. My kids are 11 and 14 and I haven’t really found anything which is aimed at them which they will genuinely enjoy.
What got them animated was a) sustainable investments which didn’t ruin the planet and b) specific brands which they can own a tiny bit of – for example my son was quite chuffed to learn that he owned a bit of Samsung.
I would look to open a Junior ISA and – to start with – maybe stick mostly with a ‘multi-asset fund’ If you dive under the bonnet of these funds you can actually tell your kids that they own a bit of Coca-Cola, Apple, Amazon and Microsoft.
And then maybe supplement it by giving him or her a choice and buying a very small number of shares in just one company. Normally I wouldn’t advocate this because the transaction cost of buying just one or 2 shares can make it an expensive thing to do. Many sites will charge about £10 to buy a share. But if he or she is a gamer give them the choice of Samsung or Microsoft. If they want a phone buy them an Apple share.
If they are a Greta in the making them have a look at the BMO range of Sustainable Multi-Asset funds and show them some of the positive things their money is doing.
Kids are commercial and I think making the connection between the real world and this weird thing called investing is the best starting point.
As an aside Fidelity currently has a deal with no fees on their Junior ISAs – worth a look. Good luck!