Introduction for a child to share dealing
Discussion
My 7 year old son is fascinated by all things financial - he loves saving his pocket money, has a paper 'account' of what's in his piggy bank - then 'withdraws/transfers' it when he takes it down the bank to pay in. I was in the bank the other week and while I was at the cashier, HE was chatting to the lady on the information desk about different interest rates and the such (he asked for an explanation of bonds and "they just got chatting" 
).
He is a smart kid, absorbs information like a sponge, has a basic understanding of risk. I'd love him to have some kind of share-dealing experience as a youngster. We have savings for him that he is unaware of (and prefer to keep it that way) including the now defunct Child trust fund and a junior ISA.
I was thinking one of those share schemes where you invest a small amount per month, pay a nominal fee for a trade (as normally done later/next day rather than asap), looks like most banks offer something like that these days.
But... I'm not sure if I should start him on single company shares, or with a simple tracker fund. Want him to enjoy it, but also understand it (part of me wants him to lose a little £ on a higher risk exposure to learn a lesson). We're talking absolute minimum investment so only one trade per month rather than split as even a £1.50 fee would be a lump out of monthly figure. I do have some shares myself which I trade with a total disregard for their true value - a system which has historically served me well (although recent years the value of which has been plundered for project investment). I'm a risk-taker, wife is Mrs Sensible (I get a feeling he's more like his mum), but I hope the potential return of a little risk will really float his boat and give him something to really get his teeth into.
Any suggestions guys? Either to who offers a good product for the account or where to invest as an introduction to share dealing.
). He is a smart kid, absorbs information like a sponge, has a basic understanding of risk. I'd love him to have some kind of share-dealing experience as a youngster. We have savings for him that he is unaware of (and prefer to keep it that way) including the now defunct Child trust fund and a junior ISA.
I was thinking one of those share schemes where you invest a small amount per month, pay a nominal fee for a trade (as normally done later/next day rather than asap), looks like most banks offer something like that these days.
But... I'm not sure if I should start him on single company shares, or with a simple tracker fund. Want him to enjoy it, but also understand it (part of me wants him to lose a little £ on a higher risk exposure to learn a lesson). We're talking absolute minimum investment so only one trade per month rather than split as even a £1.50 fee would be a lump out of monthly figure. I do have some shares myself which I trade with a total disregard for their true value - a system which has historically served me well (although recent years the value of which has been plundered for project investment). I'm a risk-taker, wife is Mrs Sensible (I get a feeling he's more like his mum), but I hope the potential return of a little risk will really float his boat and give him something to really get his teeth into.
Any suggestions guys? Either to who offers a good product for the account or where to invest as an introduction to share dealing.
ellroy said:
Barclays stockbrokers online, will have to be an account in your name, with him as a nominee. Minors can't own shares.
Cheers. Appreciate the account won't be in his name (realise I didn't make that clear), but looking for a good way to start him on a road to a broad understanding. Don't some of them offer a demo account? He could have a play. Something from Alpari would allow him to trade (demo!) fx and feel like a hero with proper graphs 'n' s
t.
Metatrader to access Alpari/fx markets:
Edit: although it would lead to really awkward questions:
Daddy, if Non-farm is 0.1% below expected, what would it do to GBP? Whyyyyy?
t.Metatrader to access Alpari/fx markets:
Edit: although it would lead to really awkward questions:
Daddy, if Non-farm is 0.1% below expected, what would it do to GBP? Whyyyyy?
Edited by Hoofy on Saturday 2nd February 16:23
Awkward questions are part of every day life - pesky smart kid. Google is my friend.
I did think about FX, but have no experience of my own to offer (other than simply waiting for roughly an acceptable rate and then shopping around when (rarely) needing to make a transfer).
I tried a demo on one of the betfair systems when they were 'new', lasted about 10 minutes before buying in and doing it for real - not because I'd done particularly well, just that's me. I was doing ok, but learnt very quickly that you can't wander off when the phone rings when you're exposed to the market beyond the plan. Bottom line is I don't have the attention span for that!
Always thought that people's thinking/judgement would be very different using a demo as it's not real. Suppose that might not be the case with a 7 year old at the helm!
I did think about FX, but have no experience of my own to offer (other than simply waiting for roughly an acceptable rate and then shopping around when (rarely) needing to make a transfer).
I tried a demo on one of the betfair systems when they were 'new', lasted about 10 minutes before buying in and doing it for real - not because I'd done particularly well, just that's me. I was doing ok, but learnt very quickly that you can't wander off when the phone rings when you're exposed to the market beyond the plan. Bottom line is I don't have the attention span for that!
Always thought that people's thinking/judgement would be very different using a demo as it's not real. Suppose that might not be the case with a 7 year old at the helm!
try this
http://www.plus500.co.uk/?gclid=CI-GiPCKmLUCFQzKtA...
there is a free version where you dont use real money, sounds should be a good starting point for him
http://www.plus500.co.uk/?gclid=CI-GiPCKmLUCFQzKtA...
there is a free version where you dont use real money, sounds should be a good starting point for him
Hoofy said:
Don't some of them offer a demo account? He could have a play. Something from Alpari would allow him to trade (demo!) fx and feel like a hero with proper graphs 'n' st.
Metatrader to access Alpari/fx markets:
Edit: although it would lead to really awkward questions:
Daddy, if Non-farm is 0.1% below expected, what would it do to GBP? Whyyyyy?
Possible head and shoulders bottom on whatever chart that is you have thrown up. On iPhone so can't see it. Could be a nice bounce if set offt.Metatrader to access Alpari/fx markets:
Edit: although it would lead to really awkward questions:
Daddy, if Non-farm is 0.1% below expected, what would it do to GBP? Whyyyyy?
Edited by Hoofy on Saturday 2nd February 16:23
TRB said:
Always thought that people's thinking/judgement would be very different using a demo as it's not real. Suppose that might not be the case with a 7 year old at the helm!
Indeed. Don't tell him it's a demo. "Daddy's put £1000 for you to play with. Let's see if you can get him a tidy profit."At worst, you'll find out what Nick Leeson's behaviour was like up close and personal if he blows it all in one trade and tries to cover up the losses.
The Share Centre have a sandbox feature for you and junior to learn about losing money the painless way, then once you feel brave rich you can let him do it for real!
Maybe buy him Warren Buffett's book?
It will be a little complicated for him now - but it's certainly a good place for him to start understanding the fundamentals.
The Snowball: Warren Buffett and the Business of Life
It will be a little complicated for him now - but it's certainly a good place for him to start understanding the fundamentals.
The Snowball: Warren Buffett and the Business of Life
Hoofy said:
TRB said:
Always thought that people's thinking/judgement would be very different using a demo as it's not real. Suppose that might not be the case with a 7 year old at the helm!
Indeed. Don't tell him it's a demo. "Daddy's put £1000 for you to play with. Let's see if you can get him a tidy profit."At worst, you'll find out what Nick Leeson's behaviour was like up close and personal if he blows it all in one trade and tries to cover up the losses.
jeff m2 said:
Hoofy said:
TRB said:
Always thought that people's thinking/judgement would be very different using a demo as it's not real. Suppose that might not be the case with a 7 year old at the helm!
Indeed. Don't tell him it's a demo. "Daddy's put £1000 for you to play with. Let's see if you can get him a tidy profit."At worst, you'll find out what Nick Leeson's behaviour was like up close and personal if he blows it all in one trade and tries to cover up the losses.
Ok, that.
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