The teenagers investing in the stock market – with help from Dad

Mike Hudson, a biologist from Buckinghamshire, has been investing for more than 25 years. He set up a Junior Isa for his son Sebastian, who is 14, principally to save his birthday and Christmas money.

“We started six or seven years ago when he realised he had more money than he could spend on sweets or Lego,” Mike explains. “From an investment point of view, it’s really never too early to start.”

The only straightforward way for people aged under 18 to access the investment market is for their parents to open a stocks and shares Junior Isa for them, which they  – or anyone else – can then pay into.

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

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

Sebastian invests with Hargreaves Lansdown and has developed a particular interest in science companies.

“He has some investment in innovation companies, such as Imperial [College Innovations], which offer long-term investing,” says Mike.

“And then at the other end of the spectrum he has money in the Brunner Investment Trust, and that’s been one of his best ongoing investments because it’s a great portfolio across some of the world’s biggest and strongest companies, and it’s quite diversified.”

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

“I would like a deposit on a house, that sort of thing, but it’s also interesting short-term to watch how the value changes over time,” the teenager says. “It’s generally more worthwhile 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 than ever to information about investing via social media platforms such as TikTok.

“Investing is a good way to build family wealth,” Ross adds. “But ultimately I would love my kids to have financial freedom – to do the job because they want to do it, not because it’s the highest-paying job. That’s worth everything.”