When you create a Kids Account, you’ll be able to sign in and switch between yours and theirs, just like Netflix. You'll control their account, and decide how much or how little they are involved.
🚨 Important: Because your child is under 18, legally they aren’t allowed to manage their own investments.
Ways to manage your kids investment account
Involve your kids in money discussions
It may sound lame to sit around the dinner table discussing share portfolios, but many Hatch investors do. If compounding growth is the 8th wonder of the world, the fascination you’ll feel when you buy shares could be considered the 9th.
Some families like to talk about companies they’re interested in, or trends their kids are noticing. Others like to spot big brands they know and love as they walk down the street (Mc Donalds? Coke? Nike?) and add them to their children's watchlists. It’s like when you buy a red car, and suddenly you see them everywhere - once you buy shares, you’ll get interesting information from all directions.
A regular check of your Kids Accounts will also help them learn about the usual share market fluctuations and how share prices work over time. They’ll grow up comfortable with seeing red and green and knowing what they mean, which means when they eventually go out into the big wide world, they’ll have a level of financial literacy that most of us could only dream of.
🤓 Fun fact: A $20 a week deposit adds up to over $1,000 a year, and if shares continue to deliver average annual returns of about 10%, it could lead to your child having a whopping $62,000 nest egg in 20 years.
Take a long-term view
One of the most dangerous myths when it comes to shares is that the more you do, the better. Shares are one area where doing less can sometimes pay off.
Many investors automate their Kids Accounts.
Making regular deposits every week, fortnight or month.
Choosing a handful of shares and ETFs.
Setting up a fees-free Auo-invest.
Auto-invest is a simple and effective way to lower your fees while still getting the benefits of dollar-cost averaging. Investors who take this approach often don’t even sign into Hatch, they just let compounding growth do its magic.
💡 Note: To start, only parents and legal guardians will be able to open Kids Accounts, but after you've made an initial deposit, anyone can contribute to it.