There are around 270,000 Australian children whose savvy parents have invested stocks on their behalf, while some all have crypto accounts.
About 270,000 Australian children are playing a new game by investing in the stock market, according to a study.
The survey found that 7 percent of children under 12 have a stock trading account in their name, the equivalent of 270,000 Australian children who are invested in the stock market.
It also revealed that 2% of children under 12 have a cryptocurrency account in their name, according to comparison site Finder.
Finder investment expert Kylie Purcell said it’s never too early to introduce your kids to key wealth concepts like investing.
âFinancial literacy is too often something we don’t learn until we’re in our twenties. While it is important to teach children about saving and budgeting, the concept of investing is also important, âshe said.
âStarting an investment fund early on is a great way to teach your kids the concepts of wealth accumulation and compound returns over time. “
But Ms Purcell warns parents need to watch their children’s investments.
âTake the opportunity to teach them the importance of not putting all your eggs in one basket, but rather spreading their money across different funds and businesses,â she explained.
âIf you only invest small amounts of money, micro-investing apps like Raiz are ideal because you won’t have to face large brokerage fees and you can let your child invest their loose change. . “
“If you choose to go through a stock 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 that more than half of children under 12 have a savings account.
Children of millennial parents are more likely to have a stock trading account or cryptocurrency account than those of Generation X parents.
While children must be over 18 to buy and sell shares, parents can open minor accounts in their name. This means that stocks and ETFs are theirs but cannot be accessed until they are old enough.
Children under the age of 18 can also practice stock trading through a demo account or the ASX Sharemarket Schools game.