With the new school year under way you might be more focused on uniforms and books than long-term investing. But doing your homework on the dos and don'ts of investing for your children or grandchildren could make a major difference to their financial futures. And a good start, according to Fidelity International, could be not to fall foul of these five investment myths.
Myth no. 1: Children don't pay tax
Your child will pay tax on anything they earn above the standard personal allowance of £11,000 (for 2016-17). But as long as the interest they earn on any investments falls below this, there will be no tax to pay. However, the rules are tougher if the interest is earned on money from a parent.