Five myths about investing for children
By Kirsten Hastings, 22 Aug 16
With the new school year about to start in the UK, Fidelity International’s investment director for personal investing, Tom Stevenson, debunks five myths about investing for children.
“Not quite,” says Stevenson.
“With a [child trust fund or Junior Isa], as soon as they hit 18 their account is automatically rolled over into an adult Isa.
“It’s at this point that parents and grandparents often panic. What if all those years of saving and investing end up getting blown on a gap year or something totally inappropriate and not the purposes you’ve had them earmarked for in your mind for the past 18 or so years?
“Well, if you have a wilful 18-year-old on your hands, then you might find yourself fighting a losing battle. But making a point of talking about your child’s savings and investments with them from as early an age as you can, getting them involved and showing them how it’s growing nicely over the years is a good way to instil a savings habit in them that – you hope – will pay off.”
Tags: Fidelity | Investment Strategy
