How to get your child started with investing in the share market

There’s around 270,000 Aussie children whose savvy parents have invested shares in their name, while some every have crypto accounts.

Around 270,000 Aussie kids are playing a new game by investing in the stock market, research has found.

The survey found that 7 per cent of children under the age of 12 have a share trading account in their name, the equivalent to 270,000 Aussie kids who are invested in the stock market.

It also found 2 per cent of children under 12 have a cryptocurrency account in their name, according to comparison website Finder.

Kylie Purcell, Finder’s investing expert, said it’s never too early to introduce your children to key wealth concepts like investing.

“Financial literacy is too often something we don’t learn until we reach our twenties. While it’s important to teach children about saving and budgeting, the concept of investing is also important,” she said.

“Starting an investing fund early on is a great way to teach your children the concepts of wealth accumulation and compounding returns over time.”

It’s never too early to introduce your children to key wealth concepts like investing. Picture: iStock

But Ms Purcell warns parents must supervise their children’s investing.

“Use the opportunity to teach them the importance of not putting all your eggs in one basket, but instead spreading out their money over different funds and companies,” she explained.

“If you’re only investing small amounts of money, micro-investing apps such as Raiz are great because you won’t face large brokerage fees, and you can let your child invest their spare change.”

“If you choose to go through a share trading platform like Commsec or Superhero, consider investing some of your money with your child”

“Making it a joint activity between the two of you can make it a fun learning experience.”

The survey also found more than half of children under 12 have a savings account.

It's worth teaching kids about money when they are young. Picture: iStock

Children of Millennial parents are more likely to have a share trading account or cryptocurrency account than those of Gen X parents.

While kids must be over 18 to buy and sell shares, however parents can open minor accounts under their name. This means shares and ETFs are owned by them but cannot be accessed until they’re old enough.

Children under 18 can also practice trading shares through a demo account or the ASX Sharemarket Schools game.

Originally published as How to get your child started with investing in the share market