Investing for Kids (Parents’ Guide): Junior ISAs, 529s, Custodial Accounts, and the Best Family-Friendly Money Apps (UK & US, 2025)
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Introduction
Investing isn’t just for adults — children and teens can start learning smart money habits early. In fact, research shows that many kids form financial habits by age 7, making it crucial for parents to introduce budgeting, saving, and basic investing concepts early.
In this comprehensive guide, we’ll explore how to teach kids to invest at different ages and highlight the best investing apps for kids in the UK and US. We’ll cover both fun educational tools and actual investment platforms (like custodial accounts and Junior ISAs) that allow kids to get real investing experience under supervision.
Our focus is on highly-rated, trusted, and award-winning services that are easy to use, safe, and educational for the whole family. Let’s dive in!
Why Teach Kids About Investing Early?
Instilling financial literacy early gives children a head start on a secure future. Teaching kids about investing helps them grasp important concepts like budgeting, risk versus reward, saving, and long-term planning.
By learning how money grows, kids gain accountability for their financial decisions. They also benefit from the power of compounding — even small amounts invested when they’re young can grow significantly by adulthood.
Another practical reason to start early: today’s youth are exposed to financial ideas (and misinformation) on social media. One survey found 43% of children used social media to learn how to invest, and 25% showed interest in cryptocurrency — areas that can be risky without proper guidance.
By teaching investing basics at home, parents can ensure kids develop healthy financial habits and skepticism toward “get-rich-quick” schemes. Early investment education also builds confidence; studies show only about 24% of young people feel confident managing money independently, so there’s plenty of room to improve through hands-on learning.
How to Teach Kids to Invest (Education vs. Real Accounts)
Start with education before real money. Young children first need to learn what money is and how saving works before handling investing. This can be done through games and apps that simulate finances.
For example:
Coin Math – Kids Counting Money (US, iOS/Android) → A long-standing educational app where kids practice recognising and counting US coins and bills.
Money Up! – Counting Coins (UK/US) → widely used in schools to teach coin values and making change. Updated and available for both GBP and USD modes.
Savings Spree (winner of a Parents’ Choice Gold Award) uses mini-games to show kids aged 7+ how everyday choices to save or spend can add up over time.
As children grow, parents can gradually introduce real investing tools under supervision. In the US, this often means using a custodial account (opened by a parent for the child) where the child can help pick investments while the adult oversees. In the UK, parents can invest on a child’s behalf through a Junior ISA or trust until the child is old enough.
Keep lessons practical and positive:
Use visual charts or jars of coins.
Match their contributions or pay “interest” on savings to demonstrate growth.
Let them research one stock or ETF and buy a small amount.
Above all, emphasise that investing is about patience and long-term growth, not quick wins.
Investing for Young Children (Under 10)
At this age, the goal is to build basic money sense in a fun, hands-on way.
Money Games & Simulations
Coin Math – Kids Counting Money (US, iOS/Android) → A long-standing educational app where kids practice recognising and counting US coins and bills.
Money Up! – Counting Coins (UK/US) → widely used in schools to teach coin values and making change. Updated and available for both GBP and USD modes.
Savings Spree – mini-games teaching saving vs spending.
Allowances and Saving Habits
Apps like RoosterMoney (by NatWest) start as simple chore trackers and evolve into pocket money managers. Kids learn to split into Spend / Save / Share pots.
Interactive Piggy Banks
Modern piggy banks often link with apps. Gimi combines chores with savings goals and animated money lessons.
Storybooks & Videos
Resources like the Bank of England’s Money and Me programme offer free lessons about money management.
Even if parents are handling the actual investing (e.g., opening a Junior ISA), it helps to tell children:
“We’re saving this money for you and investing it so it can grow for your future.”
Best Tools for Tweens (Ages 10–12)
Tweens can handle bigger concepts and start learning real money management.
GoHenry – Prepaid debit card + app for ages 6–18. Kids track balance, set goals, complete “Money Missions,” and UK users can add a Junior ISA.
BusyKid (US) – Chore app with prepaid Visa. Kids can choose to save, donate, or invest fractions of stocks (minimum $10).
Stockpile – Brokerage with 3,000+ stocks & ETFs. Kids create wishlists; parents approve.
Simulation platforms (like HowTheMarketWorks or Piggybank Fantasy Stock Exchange in the UK) let kids practice without risk.
Investing Platforms for Teenagers (13–18)
Teens are ready for more responsibility and real accounts.
🇺🇸 US – Custodial Accounts (UGMA/UTMA)
Managed by parents, ownership transfers at 18–21. Options include:
🇬🇧 UK – Junior ISAs & SIPPs
Moneybox – app-based Junior ISA.
Beanstalk – easy JISA with cashback contributions.
Nutmeg – robo-advised portfolios.
Moneyfarm – ethical and managed options.
Other Teen Options
Wealthify (UK) – ethical investment choices.
Roth IRA for Kids (US) – requires earned income (babysitting, part-time job). Providers: Vanguard, Fidelity, Schwab.
Parent Concerns & Common Fears
It’s natural for parents to feel nervous. Here are the top fears and solutions:
“What if my child loses money?”
→ Diversify through index funds or ETFs. Teach them volatility is normal.“I don’t know enough myself.”
→ Use simple robo-advisors like Nutmeg (UK) or Betterment (US).“I need a lot to start.”
→ False. Many apps allow £/$10 or fractional shares.“What if we make mistakes?”
→ With broad funds and regulated platforms, the risk of catastrophic mistakes is low.
Automation & Low Costs
Two pillars of investing success:
Automation – set monthly deposits. Kids see consistent growth.
Low fees – small percentage differences add up to thousands over decades.
Example: Alice invests £10,000 in a 0.2% fund; Bob invests in a 1.5% fund. After 30 years, Alice could have £76,000, Bob £60,000 — just from fees.
🇬🇧 UK Platforms Round-Up
Vanguard UK – global tracker funds with rock-bottom fees.
AJ Bell – wide investment range, simple platform for parents.
Nutmeg – robo-advisor with goal-based portfolios, including JISAs.
Moneybox – app-based JISA and Lifetime ISA with round-up investing.
Beanstalk – family-friendly JISA that makes gifting easy.
GoHenry – prepaid debit card and app for kids/teens with chores, allowance, and money lessons.
Hargreaves Lansdown – premium service with research tools, but higher fees.
Snoop – budgeting app that helps parents track spending and spot savings.
Chip – automated saving app with investment options.
InvestEngine – low-cost ETFs (no JISA yet, but strong for family investing).
🇺🇸 US Platforms Round-Up
Fidelity Youth Account – fee-free teen brokerage account with a debit card, backed by a trusted US provider.
Greenlight – popular debit card with chore tracking, allowance tools, and optional investing features.
Acorns Early – family plan that invests spare change and allows parents to open custodial investment accounts.
EarlyBird – app for gifting money directly into a child’s investment account, with video messages from family.
Stockpile – fractional share app that lets kids receive stocks as gifts and learn investing basics.
BusyKid – chores + allowance app where kids can save, spend, donate, and invest in real stocks.
Betterment – robo-advisor with custodial accounts, automated portfolios, and tax-smart investing.
Wealthfront – automated investing platform with custodial options and advanced financial planning tools.
Comparison Tables
🇬🇧 UK Platforms
| Platform | Ages | Features | Cost |
|---|---|---|---|
| GoHenry | 6–18 | Debit card, chores, JISA option | £3.99–£5.99/mo |
| Snoop | 10+ | Budgeting app | Free |
| Chip | Parents | Auto-saving + investing | Free basic, ~0.5% investing fee |
| InvestEngine | 18+ | ETF portfolios (no JISA yet) | 0% DIY, 0.25% managed |
| Moneyfarm | Parents | Managed robo portfolios | 0.35–0.75% |
| Vanguard UK | Parents (JISA for kids) | Low-cost index funds, global trackers | 0.15% platform fee + fund fees (~0.1%) |
| AJ Bell Youinvest | Parents (JISA for kids) | Wide fund range, simple app | 0.25% platform fee (capped) |
| Moneybox | Parents (JISA for kids) | Round-ups, app-based investing | 0.45% platform fee + fund fees |
| Beanstalk | Parents (JISA for kids) | Family contributions + cashback | 0.5% annual fee |
| Hargreaves Lansdown | Parents (JISA for kids) | Top service, education, wide choice | 0.45% platform fee (higher than average) |
🇺🇸 US Platforms
| Platform | Ages | Features | Cost |
|---|---|---|---|
| Fidelity Youth | 13–17 | Brokerage + debit card, education tools | Free |
| Greenlight | 6–18 | Debit card, saving, stock/ETF investing, parental controls | $4.99+/mo |
| Acorns Early | 0–18 | Custodial account, recurring contributions, family gifting | $5/mo |
| EarlyBird | 0–18 | Custodial investing with family/friend contributions | $2.95+/mo |
| Stockpile | Any (w/ parent) | Fractional shares, stock gift cards, parental approval system | $4.95+/mo |
| BusyKid | 5–16 | Chores + allowance tracker, prepaid card, investing option | $3.99+/mo |
| Betterment | Parents (can set up custodial) | Robo-advisor, automated portfolios, goal tracking | 0.25% AUM |
| Wealthfront | Parents (can set up custodial) | Robo-advisor, tax optimisation, customisable portfolios | 0.25% AUM |
FAQs
Can kids really invest without adult help?
No — parents/guardians must set up and oversee accounts.
Are all tools available in both UK and US?
No — some are region-specific. We’ve labelled accordingly.
Will my child lose money investing?
Short term, yes (markets fluctuate). Long term, diversified portfolios tend to grow.
How do apps teach financial literacy?
Through interactive tools: prepaid cards, savings goals, gamified learning, and investment options.
👉 Download The Slow Money Starter Toolkit →
Conclusion
From simple games and piggy banks to custodial accounts and Junior ISAs, teaching kids about investing is a lifelong pathway. These tools help children — and eventually teens — build habits of saving, reflection, and long-term planning that align with the Slow Money values of mindful investing and patience.
Your guidance today gives them the knowledge and confidence to build wealth steadily, ethically, and sustainably — one small step at a time.
© Slow Money Movement™ 2025.
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