Investing for kids: turn pocket money into a portfolio

11 snips

Feb 19, 2026

A lively guide to starting kids with investing and making time work in their favor. They walk through account choices like minor trusts, investment bonds or super and the tax rules parents should know. Practical tips on simple ETF portfolios, low fees and automation. Age-based ways to teach kids about money and build long-term habits.

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ANECDOTE

Listener Turned Her Son Into An Investor

Lisa set her 14-year-old son investing as soon as he started a casual job and he loves watching the balance grow.
She also changed his default super to high growth, showing small actions can have big long-term impact.

ADVICE

Consider Investing In Your Own Name

Invest in your own name if you want simplicity and to avoid punitive tax rules on kids' income.
Remember transferring assets later can trigger capital gains, so weigh tax now versus later.

ADVICE

Set Up An Informal Trust Properly

Use an informal (minor) trust so the child is beneficiary from day one to allow tax-effective transfer at 18.
Ensure the account name clearly records 'trustee for [child]' to prove beneficiary status to the ATO.

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When it comes to investing for kids, the biggest advantage they have is time.

But what is the best way to set it up?

We answer the flood of questions coming in from the Equity Mates community like whose name it should be in and what to buy.

We cover:

• Whether to invest in your own name or set up a minor trust, investment bond or super account.

• The tax rules parents need to understand.

• How we’d build a simple ETF portfolio designed for decades of compounding.

📈 Stocks and ETFs Mentioned: GHHF, DHHF, IVV, NDQ

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Thanks to Saroj, Marty, Leonie, Lisa (both of them!) and Sam for sending in your questions.

Want to get involved in the podcast? Record a voice note or send us a message

And come and join the conversation in the Equity Mates Facebook Discussion Group.

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Thanks to Betashares for sponsoring this episode. To find out more about Betashares Direct Kids Account's visit betashares.com.au

Betashares Capital Ltd (ABN 78 139 566 868 AFSL 341181) is the issuer of the Betashares Funds, as well as Betashares Invest, the IDPS-like scheme available via Betashares Direct. Read the relevant Product Disclosure Statement and Target Market Determination, available at www.betashares.com.au, before making an investment decision. This information is general in nature and doesn’t take into account any person’s financial objectives, situation or needs. You should consider its appropriateness taking into account such factors and seek professional financial advice.

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Looking for some of our favourite research tools?

Download our free Basics of ETF handbook
Or our free 4-step stock checklist
Find company information on TIKR
Screen the market with GuruFocus
Track your portfolio with Sharesight

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In the spirit of reconciliation, Equity Mates Media and the hosts of Equity Mates Investing acknowledge the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people today.

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Equity Mates Investing is a product of Equity Mates Media.

This podcast is intended for education and entertainment purposes. Any advice is general advice only, and has not taken into account your personal financial circumstances, needs or objectives. Before acting on general advice, you should consider if it is relevant to your needs and read the relevant Product Disclosure Statement. And if you are unsure, please speak to a financial professional. Equity Mates Media operates under Australian Financial Services Licence 540697.

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