How can I teach my teen about investing?

Q: How can I help my soon to be 18 year old daughter learn about saving and investing?

A: This is a topic that’s close to my heart as a mother to a 14 and 17 year old. Helping teenagers understand money early can make a huge difference to the choices they make later on. The good news is there are lots of simple ways to start those conversations.

Here are five useful places on our website that can help your daughter begin learning about saving and investing. Hope it helps!

• Get updates on markets, ISA funds, pension saving and much more

1. Principles for good investing

This guide walks through the core ideas behind successful investing in a clear and straightforward way. It covers concepts like the benefits of starting early, taking a long-term approach, spreading your investments to manage risk, staying invested through market ups and downs, and understanding the power of compounding. It’s a great starting point for someone new to investing.

• Read up on our principles for good investing

2. Investing basics

We launched this section late last year to help people become more confident investors. It brings together a broad range of introductory topics - from how markets work and the difference between saving and investing, to understanding risk, diversification, investing rules of thumb and asset classes. It’s designed to build knowledge step-by-step.

• Look at our range of investing basics

3. Milestones and money: teaching your teen about their Junior ISA

This article looks at how parents can use a Junior ISA as a practical way to introduce teenagers to investing. It explores how to talk about the account with them, how investments grow over time and how involving them in the conversation can help build confidence and good habits before they reach adulthood.

• Read milestones and money: teaching your teen about their Junior ISA

4. What happens to a Junior ISA when the child turns 18?

When a child turns 18, their Junior ISA automatically becomes an adult ISA and the money becomes theirs to manage. This piece explains what changes at that point, what choices they’ll have, and how parents can help prepare them so they feel comfortable taking control of their savings.

• Learn what happens to a Junior ISA when the child turns 18

5. Compounding in a nutshell

One of the most powerful ideas in investing is compounding – the way returns can generate their own returns over time. This short guide explains the concept in simple terms and shows why starting early, even with small amounts, can make a big difference over the long run.

• Understand more about the power of compounding

We recently spoke to personal finance expert Claer Barrett on our Personal Investing podcast, where she shared her thoughts on the good - and bad - money habits we pass on to our children.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. Junior ISAs are long term tax-efficient savings accounts for children. Withdrawals will not be possible until the child reaches age 18. A Junior ISA is only available to children under the age of 18 who are resident in the UK. It is not possible to hold both a Junior ISA and a Child Trust Fund (CTF). If your child was born between 1 September 2002 and 2 January 2011 the Government would have automatically opened a CTF on your child’s behalf. If your child holds a CTF they can transfer the investment into a Junior ISA. Please note that Fidelity does not allow for CTF transfers into a Junior ISA. Parents or guardians can open the Junior ISA and manage the account but the money belongs to the child and the investment is locked away until the child reaches 18 years old. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.