AN ORIGINAL BORING MONEY GUY SERIES
RAISE THEM READY · A FAMILY MONEY HOW TO
How to get your child interested in investing.
Before you explain how investing works, give them a reason to want to know.
One standalone How To. Start with the parent briefing, or jump straight to the activity. There is no required order.
FOR PARENTS · THE BRIEFING
What does twelve extra years really do?
Maya starts investing £200 a month at 18. Lewis starts at 30. They both keep going until 58. See how much of the difference comes from money they put in — and how much comes from growth.
THE PARENT BRIEFING
Before you explain investing, give them a reason to care.
Children don't usually wake up desperate to understand investment funds. Nor should they have to. If we open with the technical explanation, we've already made the conversation feel like school. Start with what matters to them, not what we think they ought to know.
“If you had an extra £200 every month, what would you do with it?”
Travel? A new phone? Going out? Saving for something big? Listen to the answer. It tells you what actually interests them. You don't need to correct it.
“What if some of that money could make money of its own?”
And then: “What if that extra money could make money too?” Don't race to explain. Let them wonder what that means first.
What you need to understand first
Investing means owning part of something productive. A low-cost global share fund can let someone own tiny pieces of hundreds or thousands of businesses across the world, without having to guess which individual company will be the next winner. Those businesses sell products, provide services, and can grow their profits over time. Historically, owning a broad mix of shares for decades has been a powerful way to build wealth. You do not need to be rich to begin learning about it, or to invest modest amounts when your finances allow.
The habit matters as much as the starting amount. Investing affordable amounts regularly means you keep acquiring fund units through good years and bad. Imagine walking into a shop to buy something you already planned to purchase, only to find it on sale: the same £20 buys more. If a global fund's unit price falls, your regular contribution buys more units than it did at the old price. You haven't made an instant profit, and prices could fall further, but those extra units can benefit if markets rise over the years ahead.
What about the scary red numbers? The value of a global share fund will rise and fall. A lower value on the screen isn't the same as having sold. If you sell after a fall, you realise that decline relative to what you paid and no longer own those units if prices subsequently recover. Keeping the investment means staying exposed to both possible further falls and future growth. Consistent contributions can build your holding during the downturn. This is why a long time horizon, global diversification and money you won't need soon are so important. No particular recovery or return is promised.
Compound growth is growth building on earlier growth. Imagine £100 grows by 10% to £110. If it grows another 10%, that second increase is £11 rather than £10, because the first increase now has a chance to grow as well. Actual investment returns are uneven; the long-term opportunity is about many years of owning businesses, not a guaranteed percentage every year.
“Remember that worldwide fund we were already planning to put £20 into each month? Its price has dropped. That's uncomfortable if we look at what we own today—but our next £20 now buys more pieces of the fund. We don't know what will happen next month. We're investing for much further in the future.”
The shop-sale comparison is about buying more fund units at a lower price, not a promise that investments always recover. Money for imminent needs belongs in accessible savings; long-term investing is a different job.
Maya paid in £96,000; Lewis paid in £67,200. So she personally contributed only £28,800 more, but the illustrated balances differ by about £317,000. Earlier contributions had longer to grow.
Assumes £200 invested every month and an illustrative average 7% annual return, compounded monthly, with no fees or tax and no adjustment for inflation. Actual returns fluctuate and the outcome is not guaranteed. Money may be worth less in real terms decades from now.
The conversation to have, not the lecture to give
- Ask about the £200 first. You want their imagination, not their obedience.
- Introduce the two versions of them. One invests from 18; one starts at 30. Ask who reaches £500,000 sooner, then ask them to guess the ages.
- Reveal the race below. Give the numbers a chance to surprise them.
- Ask what they would change. More each month? Start earlier? A different goal? Help them test their suggestion.
You don't need to pick winning companies, wait for the perfect moment, or find £200 a month to start understanding investing. The positive long-term habit to teach is simple: own a broad mix of businesses, invest what you can afford consistently, and allow plenty of time. Market falls are part of the journey, not a reason to abandon it automatically. Helping your child understand that today can make future financial decisions feel much less intimidating.
The figures are illustrative and investing is best suited to money that can remain invested through setbacks. Supporting a family's short-term needs and building accessible savings come first.
Ready to make it real? You have the context. Now let them predict what happens before you explain the answer.
Try it together ↓TRY THIS WITH THEM
Race to £500,000.
Start with the question, not the answer. Two versions of you invest the same amount. One starts at 18; the other waits until 30.
Let them answer. Don't judge the answer. Then ask: What if that money could start making money of its own?
MAKE YOUR PREDICTION
Guess the ages, then reveal what the numbers show.
Now change one thing.
What if both people could invest a different amount each month?
Start at 18: Age 57
Start at 30: Age 69
With £200 a month, someone who starts at 18 reaches the target years earlier.
NOW MAKE IT STICK
Race to a Million.
The original mini challenge has been upgraded into a more visual standalone game. Pick the investor who reaches £1 million at the younger age, then watch the race unfold.
Rather than asking “Did you get it right?”, ask “What surprised you?” or “What would you change to reach the goal sooner?” The point is to get them curious, not to test them.
Ten replayable head-to-head races, visual investor cards and instant explanations after every choice.
Choose who reaches £1 million at the younger age, reveal both finish lines, then talk about why.
Keep the conversation going.
Ask: “What would you change to get there sooner?” The most important discovery isn't a magic investment return. It's that time is one ingredient they can start using early — alongside affordable contributions and an understanding of risk.
You can now play the upgraded Race to a Million game here on Mintmere or download the printable version.
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