Investing for children remains one of the most important ways to give them a head start, but beware of fees.
The rising cost of living is seeing parents looking to help their children, with a growing number of products tailored to under 18s investing now emerging.
These apps are gaining popularity, as record low rates force the bank of mum and dad might not be able to use the old piggy bank.
As such Superhero’s CEO John Winters points to the rise of non traditional financial tools parents are using to help their children.
“Where previously many parents and guardians invested regular savings into low interest bank accounts, there’s been a big shift where parents are looking to build an investment portfolio for their children,” Winters said.
What is the easiest way to invest for kids?
According to Winters, investing doesn’t have to be difficult, with parents having the option of simply tracking a market.
He highlights how choosing a simple low cost exchange-traded fund that allows you to passively add to your portfolio.
“It’s varied. We do see that when people start investing for their children they often start with ETFs,” he said.
For those new to investing, the diversification and exposure offered by ETFs is often used as a starting point as they build up their knowledge about various companies and stocks.”
The CEO points out that ease isn’t necessarily everything, with parents needing to adjust their portfolio towards their own risk…