February 23, 2024
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How to Teach Your Kids to Invest: Useful Tips

It is never too early to start teaching your kids about investing. The earlier you start, the sooner they will learn about financial ownership and the responsibility that comes with it.

Investing under 18 is not easy. You have to first teach them the basics and then move onto the more important stuff. The best thing to do would be to allow them to invest in one or two stocks and then create the rest of the portfolio on their behalf.

There are ways following which you can make investing under 18 easy. For instance, you can open a custodial account for your kid.

Tips To Teach Your Kids To Invest

If you are determined to teach your kids to invest, we have the right tips for you. In case, you are confused regarding how to start, you can follow the tips given below.


  • Keep Things Simple


You shouldn’t forget the fact that they are kids. They will take more time to understand a complex thing like an investment. This is why you should hold your patience and start with the basics. Teach them the terms related to investment, stocks, and mutual funds.


  • Speak Their Language


Investment in itself is a serious topic. But if you try to use tough words and terms, they may not be able to understand it. Many of them won’t even show an interest to learn. This is why you should adjust your teaching style according to them. Teach them about investment through stories and jokes. You can also involve them in investing activities.


  • Use A Computer Game


Another great way to teach kids about investing is by using a computer game based on the stock market. This will automatically draw their attention. The good thing is you will find a few such games in the market. The colorful icons and the cool interface of these games will keep them engaged.


  • Teach Everyday


Since investing is a completely new thing for kids, you should teach them a little every day. Teaching too much at once may get them confused. Also, if you give breaks in between, they may forget certain things. To keep the knowledge flowing, you should teach them every day. Make it a point to teach something new daily.

With these tips, it should be easier for you to teach your kids investing. This knowledge will stay with them when they grow up.