Teenagers invest in the stock market – with dad's help

Buckinghamshire biologist Mike Hudson has been investing for over 25 years. He set up a Junior Isa for his 14-year-old son Sebastian, mainly to save money for his birthday and Christmas.

“We started six or seven years ago when he realized he had more money than he could spend on candy or Lego,” Mike says. “From an investment standpoint, it’s really never too early to start.”

The only easy way for people aged under 18 to access the investment market is for their parents to open a Junior Isa shares company for them, in which they – or anyone from other – can then contribute.

You can pay up to £9,000 in any tax year into Junior Isas, which can be split between cash and stocks and shares accounts. When the child turns 18, the Isa will automatically become an adult Isa without any tax implications or hassle.

There are hundreds of providers on the market offering Junior Stock Isas, most of which allow you to choose a risk profile. Some offer ready-made portfolios, while others give you a certain level of control over the stocks you want to invest in.

Sebastian invests at Hargreaves Lansdown and has developed a particular interest in science-based businesses.

“He invested in innovative companies, like Imperial [College Innovations]which offer long-term investments,” explains Mike.

“And then, on the other end of the spectrum, he has money in the Brunner Investment Trust, and that has been one of his best investments going because it's a great portfolio of some of the largest and strongest companies in the world, and it's quite diverse.”

Over time, Sebastian can afford to invest in a mix of products and has long-term goals in mind.

“I'd like to have a deposit on a house, that sort of thing, but it's also interesting in the short term to see how the value changes over time,” says the teenager. “It’s usually more worth it than just keeping your money in a savings account.”

It's not a regular topic of conversation among his friends, he admits, but teenagers have more access to information about investing through social media platforms such as TikTok than ever before.

“Investing is a good way to build family wealth,” adds Ross. “But ultimately, I would like my children to have financial freedom – to do this job because they want to, not because it's the best paying job. It's worth everything.