← All guides · Updated 19 October 2026

How to get started investing for your kid, step by step

Talk first, claim free money, pick the account, start small and make it a habit your child can see. A plain guide for parents in the US, the UK and Europe.

Edmund is an education and analysis site. We are not a broker or an adviser, we hold no positions, and nothing here is a recommendation to buy or sell. Fees and rules change: check the provider's own page.

About 760,000 UK Child Trust Funds, worth about £1.5 billion, are still unclaimed (HMRC and FCA, 2025–26). Many parents opened an account and forgot it. The children never learned what they owned. This guide is about doing both: opening the account, and making it something your child understands.

Step 0: Talk first (10 minutes)

Before any money moves, sit down with your child for ten minutes.

• Open Edmund, switch on Kid mode, and do the first two lessons together: What is a share? and What is a dividend? The quizzes are optional: only if your child wants them.
• Ask your child to name three companies they know: a drink, a pair of shoes, a game. Look them up together in Edmund and see which ones share their profits.

The goal is not to pick investments. It is to make one idea clear: owning a share means owning a small piece of a real company.

Step 1: Claim the free money first

Some countries add money to a child's account. Do not miss it.

• US: children born from 2025 to 2028 can get a $1,000 seed in a Trump Account. Parents sign up with IRS Form 4547 (irs.gov/trumpaccounts). Watch out for scams: only use official IRS and Treasury channels.
• Canada: an RESP gets a 20% government grant on the first CA$2,500 a year.
• Germany: a state top-up for children ("Frühstart-Rente") is planned but was not yet law in October 2026.
• UK: there is no top-up, but a Junior ISA grows tax-free.

Step 2: Choose the account type

Our guide Which platforms to use compares the options by country. The short version:

• Funds only (simple, broad): a government account, a robo-adviser, or a fund-only Junior ISA.
• Single companies too (better for learning): a custodial account at a broker (US), a share-holding Junior ISA (UK), or a Kinderdepot (Germany).

Many families do both: a broad fund as the core, plus one to three companies to learn with.

Step 3: Open the account (what you will need)

• Your child's ID number: a Social Security number (US), a National Insurance number (UK), or a tax ID (for example the German Steuer-ID).
• A birth certificate or proof that you are the parent or guardian.
• Often both parents' agreement: some providers need both guardians to sign or to have their own account.

Step 4: Start with a small, regular amount

Regular beats perfect. Many providers let you start very small: savings plans from €1 at some German banks, £25 a month at Hargreaves Lansdown, and fractional US shares from $1 in a Fidelity Youth Account.

An illustration, not a forecast: €10 a month for 18 years, growing at 7% a year, becomes about €2,200 at age 18. Returns are never guaranteed, and some years go down.

Step 5: Make it a habit your child can see

• Plant a garden on Edmund that mirrors what your child owns, so they can see the companies as trees and the dividends as fruit.
• Mark paydays on the family calendar. Edmund shows the expected dividend dates.
• Birthdays: instead of another toy, family members can add to the account. Edmund's Gift a Dividend King card explains the company behind the gift; the money itself goes into your own account, never to Edmund.

Step 6: Review once a year, together

Pick one evening a year. Ask three questions for each company:

1. Did it raise its dividend this year?
2. Is the payment still well covered by the company's cash?
3. Has anything changed in the business?

Edmund's A–F grades help with these questions. A good grade means a company fits the rules you set. It is not a reason to buy.

Questions parents ask

How much do I need to start? At several providers, $1, £1 or €1 is enough.

Should my child pick the stocks? It depends on age. Young children can watch and ask questions. Older children can choose from a short list you prepare. Teenagers can choose and explain their reasons.

Funds or single stocks for a child? Both are fine. Funds spread the risk across many companies. Single companies are easier to understand and to talk about. Many families combine them.

What if the market falls? Prices go up and down. It is a good moment to teach patience, and to look at what happened to the company's dividend in past falls, using real history in Edmund.

This guide is general education, not personal financial, tax or legal advice. Rules and fees change; check the provider's own site before you open an account.