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The Basics. Websites geared toward children and teens can help them learn basic investing terms and concepts. Once they understand what a stock is, show them an annual report from a company you invest in. Point out information that helps you evaluate the company’s outlook. Research Skills. Ask your budding investors to research a few companies they’re interested in, such as entertainment or clothing companies, and create a hypothetical portfolio. Help them track the stocks in the newspaper or online to find out how their “investments” perform. The Real Thing. Allow children to buy an investment and practice making their own investment decisions (with your help). You’ll have to set up a custodial account if the kids are minors. Matching Funds. You might agree to match a certain amount of their investment dollars as an incentive to save. |
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