Teenager- wants to invest

[Yiddytod]

Her interested in stocks and shares has been sparked and she wants to start to invest. She's been googling vanguard trackers but only has £200 to start with.

Is it worth it for this amount ( i think vanguard might have a £500 minimum). Are there any products geared for kids that I've not found? She has a nationwide current account atm for pocket money and birthday money.

Is she prepared to lose half of it if the markets take a tumble? And £200 isn't going to last long if the cost of dealing and management charges are higher than any growth she receives. Does she have other money to add on a regular basis, and is she willing/able to commit to it for the long term or is she likely to want access to the money sooner (say within less than 5 years?)

I am not trying to discourage her, but as I financial adviser I am being realistic. Can she build up her cash savings over the next few months until she has a larger amount to invest as well as a pot of cash to hold as immediate access money? In the meantime she could open a practice account with somewhere like The Share Centre so that she can start to get a feel for investing without actually committing.

Ds bought a pair of ghastly Yeezy shoes last week for €200. Sold them on Wednesday for €470. 😳
He also has shares In Netflix that he enjoys watching.

Is she old enough to open an ISA? I don't know minimum age for that. Short term she does not need the ISA wrapper but long term she does, so the investment growth is not taxed.

Could you start off by showing her how your own account works. Maybe even she gives you the £200 and she picks a fund to invest in, such as a Vanguard tracker or a Vanguard Lifestrategy (which is a fund of funds and comes in different equity/bond percentages to fit with risk tolerance).

Maybe she would like to learn more about investing in general, some good podcasts are:
Meaningful Money
Money To The Masses
Both have websites with videos and other information aimed at young investors - generally those in their early 20's but the info could still appeal to a teenager.

Could you match what she invests? That would get her closer to a reasonable amount to start with much sooner.

She can open a Junior ISA with Vanguard and it will convert to a regular ISA automatically when she turns 18. You can start with a lump sum of 500 GBP or by setting up a regular monthly transfer of 100 GBP.

I agree with PP that she should hold back some in the bank for regular use so that what's invested doesn't need to get taken out for short term predictable expenses.