19 Year Old Investing in Share Market

heal on 23/06/2025 - 17:03

My 19.5 year old son has been working since leaving school. He has almost $35k saved up and is planning to work for the next 2.5 years before going to university. I've checked Centrelink and I don't think have $100k + in savings will affect him getting youth allowance, which is great because he doesn't want to spend 4 years saving and have to spend it on his studies. He wants that money to go towards buying a first home.

He has all his money in an online savings account where he gets bonus interest by having the balance increase each month. He was getting over 5% interest however with recent reductions in rates he is thinking about investing in shares. I haven't had any shares for many years. Any extra money I have goes into the home loan so I don't have a lot of advice, hence why I'm here to get some general advice.

If he was to invest $20k, I'm thinking maybe $5k each on 4 different safeish stocks. Maybe banks, gold, Coles/Woolies. Any recommendations on what stocks and how many stocks to spread his money across? Would it be best to invest in shares where there is a dividend reinvesting scheme?

What is the best share trading platform to use?

Any other advice for him would be great.

Financial Investment

Comments

  • DontShowMeTheMoney on 23/06/2025 - 17:13
    +21

    Look into Index Fund ETFs. Since he's still young, he might be willing to take on more risk and look at high growth ETFs and/or ETFs in specific sectors that he's interested in. Although why is he planning on working for the next 2.5 years then going into uni, instead of uni now? His earning potential is much smaller now compared to once he's graduated.

    IIRC, they asked for a list of assets I owned and my income when I applied for youth allowance, and savings in the bank will count towards that.

    He doesn't have to spend his savings on his uni degree - that's what HECS is for

    • heal on 23/06/2025 - 17:20
      +2

      We live in a rural area and he wants to still live around friends and family for a number of reasons. His earning potential will increase once he obtains a degree but so will his expenses because he would most likely be living away due to lack of opportunities where we live. He has very little expenses at the moment and is easily saving $1000 per fortnight.

      He wants to start with safe shares now, but is open to some investment in EFTs

        • djesr on 24/06/2025 - 14:07
          -3

          I don't know why you are getting negged, crypto is the best high risk high reward asset class at the moment. He is 19, has the whole life to earn in front of him. What's the point of playing it safe now.

          • RTX9090Ti on 24/06/2025 - 15:35
            -1

            @djesr: not sure why negged, I know some of my mates bought btc when it was under $30k few years back. look at the price now, its called gamble and its paid off.

            • Randolph Duke on 25/06/2025 - 09:35
              +1

              @RTX9090Ti:

              its called gamble

              Why not just punt on the horses or sports or pokies then?

              • RTX9090Ti on 25/06/2025 - 10:38

                @Randolph Duke: Because bitcoin went up 500% in past few years, how's ur horses went?

                • Randolph Duke on 25/06/2025 - 10:42

                  @RTX9090Ti: Past performance does not guarantee future returns, and if you’re treating it as gambling then it’s not really a considered investing win, is it?

          • SpicyStew on 24/06/2025 - 20:18

            @djesr: what is the point in playing it safe as you get older?
            you can't take it with you

            • tenpercent on 24/06/2025 - 20:21

              @SpicyStew: You have less time to catch up. It's about maximising what you will probably get to enjoy.

              • SpicyStew on 24/06/2025 - 20:22

                @tenpercent: if you have less time to catch up, you should be increasing risk-reward not lowering it

                • tenpercent on 24/06/2025 - 20:27

                  @SpicyStew: Yes perhaps If you've already suffered a big loss. If you were proactive you would have already reduced your risk exposure and not suffered a big loss that cannot be recouped with your forward looking risk profile.

            • djesr on 24/06/2025 - 22:54

              @SpicyStew: You have more to lose, i.e. kids and a family to look after

      • Dr Phil on 24/06/2025 - 20:48

        Most ETFs are far safer than individual shares.
        But looking at bank stocks, Macquarie is the market darling ATM followed closely by CBA.

        But let me say most youths are more clued up on investments than you think.

        I wouldnt be surprised is he was looking into Bitcoin and other crytos as we speak.
        In which case he could look at a Bitcoin ETF.

        Gold might sound old school to a youngster but it has a very positive outlook over the next 2-3 years.
        Gold is up 40% in last 12 months.and is currently in a consolidation phase.
        In which case look into a Gold ETF or Gold Miners ETF.

        If he likes NASDAQ stocks look into a NASDAQ ETF.

      • Maxxjet on 25/06/2025 - 10:40

        EFTs inherently are lower risks compared to individual stock, and with better returns. If his investment horizan is over at least 10+ years (which should be at his age), he can take some added risk such a US tech ETFs NDQ, IVV or even Fang+.

        If nobody has recommended yet , get him read through this:

        https://passiveinvestingaustralia.com/

    • heal on 23/06/2025 - 17:25
      -2

      I've looked up ETFs with him and he is open to that. Thinking now maybe $10k in ETFs and the other $10k in gold shares and maybe CommBank.

      • donga100 on 23/06/2025 - 18:36
        +22

        ETFs are shares. The only reason to invest in individual stocks (or gold) is if he wants to take much higher risk with his money in return for potentially higher gains.

        • donga100 on 23/06/2025 - 22:47
          +8

          By the way, if he invests in most ETFs (or keeps it in interest-paying savings account) he will have declarable income from the distributions/dividends even if it is reinvested by the fund (not paid to him in cash). This will likely impact his youth allowance payments and could result in a debt owed to Centrelink at the end of the year. You should consider something with a Dividend Substitution or Bonus Share Plan.

          Alternatively, if he is certain that the money will be used for a house deposit the First Home Super Saver Scheme would probably be ideal as the income is not assessable until the release is requested. Just make sure the release request date is after the period that would impact his Youth Allowance payments for the year.

      • soan papdi on 23/06/2025 - 19:21
        +4

        I'm no expert but gold and index funds tend to do well in opposing times. When times are good, share market climbs and gold tends to stagnate or grow slow. When the market is in a panic, gold does well because people like to hold on to tangible assets. Best to look at past performance and decide. Simplest is usually best.

      • SBOB on 23/06/2025 - 19:52
        +10

        Thinking now maybe $10k in ETFs and the other $10k in gold shares and maybe CommBank.

        buying individual shares like commbank, coles, etc is trying to pick winners

        Buy index diversified broad market shares, get them into the habit of regular purchases, and they'll be setup well in the future due to these early decisions (ones we all wish we'd made earlier in hindsight)

        make sure they're planning to invest the money away for medium/long term and its not $ they'll need in a few years

        If so either
        - all in one fund (eg DHHF, VDHG). Set and forget, incredibly easy to just 'not think' and add to your investment on regular intervals over time
        - Pick your own split (eg 80/20 VGS/VAS or equiv like BGBL/A200). Manage your split based on world vs au stock splits, and still relatively easy to maintain over time

        I personally do the all in one as my regular buy, as it takes my about 1 min during lunch each week to buy a $ amount via CMCMarket with $0 fees and $0 second thoughts. No messing with ratios/splits, no second guessing, just regular continual investing.

        Their young. I'd personally avoid buying gold, bonds, or 'gambling' on picking individual shares.

        Also, while their in the mindset, excellent time to have them review their super, ensure its in a low cost, high growth fund (something like hostplus, and you can do a similar 80/20 international/australia index fund with incredibly low fees). Making good decisions with things like super investments at a young age will pay 'dividends' (avoid the pun) later in their life.

        But also as someone below posted, don't sacrifice actual life experiences like travel for future investments. Way way easier doing those things when your age starts with a 2 than when it starts getting higher than that :)

        • heal on 23/06/2025 - 20:07
          +3

          I've made plenty of mistakes and it's good to see my son is interested in setting himself up for the future. He is planning on travelling. I'll also help him look at his superannuation options. You've given me some great info and I think I'll encourage him to go with some all in one ETFs and forget about individual shares.

          • SlickMick on 24/06/2025 - 08:39
            +3

            @heal: This is the way, except I suggest specifically index-tracking ETFs. (Some ETFs let you gamble on particular sectors or all sorts of things.)

            Super would be a far more productive investment, but that would obviously be for a distant future and not helpful for buying PPOR. (Unless first home buyers are allowed use super these days??)

      • mitt on 24/06/2025 - 17:57

        Most of the big ETFs will contain commbank stocks.

        Put most of it in 1 or 2 big ETFs & put 5k on high risk stocks that might moon. Mining exploration companies are neat for that.

        • Dr Phil on 24/06/2025 - 20:52
          -2

          I dont think so.
          What a ridiculous generalisation.
          There are ETFs for everything: Gold, Gold miners, Bitcoin, Nasdaq stocks, Global Shares
          None of these would invest in Combank

      • Dr Phil on 24/06/2025 - 20:50

        You are on the right track.

        Those neg voting you have NO IDEA so dont worry

    • John Barosa on 23/06/2025 - 21:29

      Where can i buy ETFs with no fees? I use CMC invest, but there's a minimum of 1k spend to buy an etf. I get distracted and purchase AMD/Google shares at 200-400.

      • SBOB on 23/06/2025 - 21:38

        CMC market is fee free buys for $1k and below.
        There is definitely not a minimum buy value, after you have purchased the initial minimum ASX holding value

        • John Barosa on 23/06/2025 - 21:39

          Not for ETFs. I keep on getting an error whenever I buy, something along the liens of "Minimum spend, 1000"

          • SBOB on 23/06/2025 - 21:40

            @John Barosa: ASX shares?
            Definitely free under $1k but first parcel of an ASX listed share or etf must be $500 or more (ASX minimum parcel limit)

            https://www.cmcmarkets.com/en-au/stockbroking/pricing

            • John Barosa on 23/06/2025 - 21:42
              -4

              @SBOB: I'm looking at Vanguard Growth Etfs.

              I don't buy Australian shares, I have no faith in Australia's economy.

              • SBOB on 23/06/2025 - 21:49
                +1

                @John Barosa: It's still listed on the ASX

                You do know Vanguard growth (vdhg, vdgr) all hold 20+% of the au market right?

                Perhaps list the actual etc index you're trying to buy as none should have minimum 1k

                International shares (ie not ASX listings) have a minimum $1k buy, but no idea why anyone chasing an ETF for overseas markets just wouldn't buy the ASX listed equivalent (eg IVV etc) , so sounds like you're buying non ASX listed etfs (which just seems like you might wanna do some more reading on why that's not necessarily a necessitiy)

      • atwilliams on 23/06/2025 - 22:24
        +2

        Several ETF providers (Vanguard, Betashares to name a couple), provide fee free purchasing of their own ETF’s (no investment limits) on their own platform. This is great for building up a holding over time. (There is usually a sale fee from these providers)

        CMC Markets is only fee free <$1K per day per security. There are several other brokers (Tiger, Superhero, eToro, Stake etc) that offer trading for $2 or $3 per transaction up to defined deal limits.

        Which works for you, depends on how frequently you are trading, but if you are going with Vanguard ETF’s suggest just using their platform.

        • bbinc on 24/06/2025 - 09:43

          I second this.

      • Maxxjet on 25/06/2025 - 10:42

        Betashares Direct

    • BluebirdV on 24/06/2025 - 12:49

      What good is a University degree with artificial intelligence growing exponentially?

  • Drakesy on 23/06/2025 - 17:18
    +15

    VAS and VGS ETFS and just watch it grow.

    • heal on 23/06/2025 - 17:24

      What's the best share trading platform to use?

      • radicalvin on 23/06/2025 - 17:25
        +3

        Betashares

      • Drakesy on 23/06/2025 - 17:35
        +7

        I use CMC as it's free brokerage up to $1000. Perfect to DCA into.

        Also at his age make sure he travels and doesn't get obsessed with investing/trading.
        Make sure he lives a life prior to hitting the 9-5 grind and regretting his 20's. It's a fine balance.

        • heal on 23/06/2025 - 17:37

          So just buy $1k each day for 5 days to avoid fees?

          What's DCA?

          • Drakesy on 23/06/2025 - 17:38
            +2

            @heal: Dollar cost averaging - progressive investment to reduce your risk over time.

            • heal on 23/06/2025 - 17:40

              @Drakesy: He'll be come to UK, Europe with us in 2027. I'm going to watch the Ashes in England (which he has no interest in) and he wants to spend a bit of time with us then take off to Germany.

              • bbinc on 24/06/2025 - 09:51
                +1

                @heal: Last friend’s son who headed for Germany came back with a German girlfriend, now wife.

        • John Barosa on 23/06/2025 - 21:31
          -3

          Believe me lmao. Most young Australians are gonna be travelling for sure. Moving out of Australia for good

          • Drakesy on 23/06/2025 - 22:27

            @John Barosa: Yeah that’s fair

          • try2bhelpful on 24/06/2025 - 11:04
            +1

            @John Barosa: So you think most young Australians will be moving out of Australia for good? You’ve just blown up your own credibility.

        • HKS on 24/06/2025 - 10:13

          free brokerage up to 1k, thats perfect. im using vangard and think theyc harge $9 each time i invest

      • LemonShapedRock on 23/06/2025 - 18:43
        +3

        If you're sticking with those Vanguard funds I'd just go with Vanguard directly and setup Auto Investing

      • arkie0 on 24/06/2025 - 10:57
        +1

        https://passiveinvestingaustralia.com/online-trading-platfor…

        I'm with betashares, no fees for EFTs buying or selling, no limits, the only downside is no CHESS. In saying that, to me its not much of a downside.

        • May4th on 25/06/2025 - 10:45

          how is their reports for tax time?

    • Malik Nasser on 23/06/2025 - 18:59
      +4

      Yes spot on, however Betashares has similar or equivalent ETFs, but with a much lower management fee.

      A200: 0.04%
      VAS: 0.07%
      (VAS management fee is 75% higher than A200)
      Note that VAS seeks to track the return of the S&P/ASX 300 (so not exactly equivalent to A200).

      BGBL: 0.08%
      VGS: 0.18%
      (VGS management fee is 125% higher than BGBL)
      Note that these are exactly equivalent as they both track the same index: MSCI World ex-Australia

      • atwilliams on 24/06/2025 - 07:42

        As those ETF’s have tracking differences (in terms of the underlying shares) what’s the performance difference over different periods?

      • SlickMick on 24/06/2025 - 09:09
        +1

        Also, Betashares Direct allows partial shares to invest full amount, which Vanguard Personal Investor doesn't.
        Also can have auto invest set for the same day that you transfer funds in, whereas Vanguard needs the funds the day before.

        • bbinc on 24/06/2025 - 09:46
          +1

          And this keeps down the costs for regular investing. He can top every week if he wants, no fees.

  • Stewardo on 23/06/2025 - 17:22
    +11

    Same day multi

  • jv on 23/06/2025 - 17:55
    +1

    Any other advice for him would be great.

    "Learn from mistakes…"

  • Bruceflix on 23/06/2025 - 18:15
    +1

    He will have a 3 month waiting period for YA with liquid assets over $7k (or thereabouts)

  • payless69 on 23/06/2025 - 18:25
    -3

    Trumpcoins?

    • MrThing on 23/06/2025 - 18:29
      +1

      trump mobile shares

  • cashless on 23/06/2025 - 18:39
    +6

    Read this, then buy suitable ETF’s

    • gedge10 on 24/06/2025 - 11:05
      +1

      Yep this is absolutely the way to go, Passive Investing Australia provides such a great introduction to investing here. I was around your son's age when I started investing and really wish I had the advice that's there.
      If I could start all over again I would just invest everything in either Vanguard Diversified All Growth Index ETF (VDAL) or Betashares Diversified All Growth ETF (DHHF).
      Simplicity is good. The less you have to think about your investments, the less likely you are to make a bad decision and lose your money.

      • AeymothSky on 24/06/2025 - 23:22

        I'm in my early 20s

        is there any point with trying to invest if I have like $6k right now? pretty much all of it is from youth allowance [don't have much expenses atm]

        • gedge10 on 25/06/2025 - 10:40

          That depends on the rest of your financial situation. Is $6k the entirety of your savings? If so, the first thing I would do is put aside 3-6 months of expenses into a separate high interest savings account for emergencies. The security of knowing you always have money saved in case something goes wrong changes how you think about money for the better. If you still have money leftover after that, keep some so you can go do fun things, and invest some of it into an all growth ETF.

  • Downvoter on 23/06/2025 - 20:29
    -1

    Go travelling Youngblood. Got another 40 years to make coin.

    • heal on 23/06/2025 - 21:12

      He can do both, he saves $1000 a f/n to set himself up for the future and has other savings for travel and buying nice things.

      • bbinc on 24/06/2025 - 09:52
        +2

        And buy him a copy of Barefoot Investors guide to managing money.

  • Dollar General on 23/06/2025 - 20:35
    -4

    Just buy CBA shares. Unstoppable

    • bbinc on 24/06/2025 - 09:56

      You’ll get decent exposure to CBA and its dividends and franking credits in most Australian ETFs. CBA is usually one of their biggest holdings.

    • frewer on 24/06/2025 - 16:44

      $192 I calls it https://www.tradingview.com/x/358Ds48d/

    • mitt on 24/06/2025 - 17:58

      CBA is essentially a bet that house prices will continue to moon forever.

      Not something I would bet on right now.

      • Dollar General on 24/06/2025 - 18:15

        Really? I’ve been hearing for over 25 years now that house prices are unsustainably high and yet here we are

  • srven3 on 23/06/2025 - 21:16
    +1

    Agree with general comments here, a decent Index Fund is the way to go (after doing due dilligence). Individual shares is like gambling, individual investors just don't have the information to beat the market return.

    • John Barosa on 23/06/2025 - 21:28
      -5

      Speak for yourself. I'm up 400 on 3600 invested

      • SBOB on 23/06/2025 - 21:41
        +4

        That's nothing
        I'm up 35x after picking the right number on the Roulette table.

        • John Barosa on 23/06/2025 - 23:32
          -3

          Trump make line go down. Democrat make line go up. Trump in office now. Democrat will come in 3.5 years.

      • SlickMick on 24/06/2025 - 09:19
        +1

        I laugh at SelfWealth's portfolio vs target vs market. On any day, anybody could win. But the market will always win eventually.

        I was up back in the day. Then I sucked. Now I'm doing okay again.
        I look forward to getting everything moved to index tracking ETFs.

  • skid on 23/06/2025 - 21:19

    Put $30k into super and forget about it. The compounding on 40 years is huge. Then on, put what they can spare into ETF's.

    • John Barosa on 23/06/2025 - 21:33
      -6

      Super is such a shit investment at a young age, cause it has no liquidity. Imagine bro has 100k in super, but wants a down payment for a house outside Australia.

      • SBOB on 23/06/2025 - 21:43
        +5

        Nothing stopping them using super for the fhss which, depending on their salary bracket, can be beneficial.

        https://www.ato.gov.au/individuals-and-families/super-for-in…

        • John Barosa on 23/06/2025 - 21:47

          Only good thing about super, is that it comes out pre tax income. I assume the 19 year old is making peanuts, and probably doesn't get taxed much. Why would he wanna invest in something so illiquid?

          I did say outside Australia though. What if he wants to leave Australia?

          • skid on 23/06/2025 - 22:02
            +3

            @John Barosa: It's time-in. Earnings inside super are taxed at 15%, unlike investments outside of super. I'd do a once off drop into super early in my working life and invest elsewhere after that.

          • SlickMick on 24/06/2025 - 09:23
            +2

            @John Barosa: That good thing about super (tax), isn't just the entry tax. It's also the earnings tax, and ultimately, the CGT exception.
            And it trumps everything else, except the CGT exemption on PPOR.

            The FHSS makes super the absolutely best place for any investment.

      • Drakesy on 24/06/2025 - 12:21

        Its the best tax break income earners can get access to outside of owning a multitude of investment properties or a trust fund.

  • EightImmortals on 24/06/2025 - 07:01
    +5

    Don't try to pick shares as a 19 year old entering the market is my advice. Instead go for a managed fund, Stockspot (my account is up 10.2% for the year) is good or you could try Vanguard as well.

    • bbinc on 24/06/2025 - 09:54

      Watch the fees though. Passive ETFs don’t need a fund manager

      • EightImmortals on 24/06/2025 - 09:57

        Yes, monthly fees are calculated on your current balance, around $23pm for a 50K account, and are tax deductible. Given the service offered and the automatic rebalancing and the yearly tax report it's well worth it IMO.

        • skid on 24/06/2025 - 10:18

          I hear different stories about whether management fees are tax deductible. Are the fees shown in your yearly tax statement or the regular statements? I hear that fees listed in the yearly tax statement can be deducted, but not the one shown in the regular statement.

          • EightImmortals on 24/06/2025 - 11:03

            @skid: Not sure, I've only been with them for a year so wont get the statement until August. Not sure why the location of the fees would matter to the taxers, the yearly statement is simply the accumulation of the monthly charges. Cheers.

            • skid on 24/06/2025 - 11:39

              @EightImmortals: Thanks, yes. Apparently (don't know whether it is true), the fees shown on the regular statements have already been claimed by the fund manager and hence you cannot deduct them. The fees shown on your annual tax statement are yours and have not been claimed by the fund manager.

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