How to Build Real Wealth for Your Kids – with Claer Barrett
5/27/202646 min
What if the greatest financial gift you could give your child isn't a savings account? It’s timing.
In this episode of Investing Unlocked, Georgie Frost and Rick Kelsey sit down with Claer Barrett – FT consumer editor, money expert and author of the bestselling What They Don't Teach You About Money – to make the case for investing for kids, and explain exactly how to do it.
They cover everything from Junior ISAs and Junior SIPPs to stock market investing for children – and how to make it work even when money is tight.
But building wealth is only half the story. This episode also explores how best to tackle difficult money conversations and how to help your children make smart decisions when they finally get access to the pot.
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Georgie Frost
Instagram: www.instagram.com/georgiefrostmoney/?hl=en
LinkedIn: linkedin.com/in/georgie-frost-a1b090110
Rick Kelsey
Instagram: https://www.instagram.com/rickkelsey/?hl=en-gb
LinkedIn: linkedin.com/in/rickkelsey
Claer Barrett
Instagram: https://www.instagram.com/claerb/?hl=en
LinkedIn: linkedin.com/in/claer-barrett-74088414
Clips
Transcript preview
First 90 secondsClaer Barrett· Guest0:00
But I am worried. I am worried that this is gonna be catastrophic for some families.
Georgie Frost· Host0:05
How much can you set aside that will actually make a meaningful difference?
Claer Barrett· Guest0:09
It's surprising, over the period of 18 years, if you do start from birth, how much that can build. One controversial thing, if I had enough money, I would [upbeat music] Welcome to Investing Unlocked, with me, Georgie Frost.
Rick Kelsey· Host0:25
And me, Rick Kelsey. Hello.
Georgie Frost· Host0:26
We're joined today by one of the UK's leading voices on personal finance, FT consumer editor, money expert on Lorraine, and author of the bestselling book, What They Don't Teach You About Money, Clare Barrett. Welcome, Clare.
Claer Barrett· Guest0:38
Thanks for having me.
Georgie Frost· Host0:39
Today we're focusing on investing for kids. There's been so much talk recently about student loans, but that isn't the only financial hurdle that young people face. And one of the best ways to give kids a financial leg up is to start investing for them, and the earlier the better. But how do you go about doing it, and what lessons can you teach kids so they don't blow it all when they eventually get their hands on it? Rick, two young kids.
Rick Kelsey· Host1:03
Yes.
Georgie Frost· Host1:03
A boy, a girl.
Rick Kelsey· Host1:04
Yeah.
Georgie Frost· Host1:04
Are you investing for them? I think I know the answer to this one, but...
Rick Kelsey· Host1:06
I, I feel like as a financial journalist, I kind of had to get this one right. But what I wanted to do was bring other people in from the start as well.
Georgie Frost· Host1:16
Okay.
Rick Kelsey· Host1:16
So, so there wasn't this kind of n- uh, this mismatch of different people putting into different funds or different savings accounts. So I just thought, "Let's keep this simple." They're each