How To Teach Your Kids About Investing and The Stock Market
3,220 views · Published 5 October 2017 · 13:09 · Indexed 20 September 2026
Channel: ppcian · 2017 · People & Blogs
Want to teach your kids how to invest? There are few gifts more powerful than the gift of stock market, investing, and financial education. Becoming a great investor takes many years of hands-on practice and learning. Teaching your children at an early age will pay dividends (pun intended) for life! As a parent, I take this topic really seriously and share the following in today's video: * Teach your kids how to invest through television programs. Make CNBC and other investing shows a family event. * Teach your children about budgeting and paying oneself first through their allowance. Have them save half of their allowance for dividend reinvestment plans. * Dividend reinvestment plans (or DRIPs) are great for kids just starting. They can invest as little as $25 at a time, often with no or minimal fees. * Forget about materialism and give the gift of stock for birthdays and holidays. The gift of stock teaches children the importance of saving and also the unimportance of material objects. * Consider finding a family member who can mentor your kids on investing. Grandparents are often great candidates for this role. * Emphasize cash flow and dividends. Emphasize a long-term approach. De-emphasize trading and get rich quick strategies. Make sure your children understand that they don't have to take on undue risk, since they have time and compound interest on their hands. * Write your kids letters about your personal investment style. Give them the letters over the years. You can include a letter when you gift them stock for birthdays and holidays. They may not understand the letters completely now, but will be forever grateful when they are older in life. If you want to learn more about dividend reinvestment plans (DRIPs), you may want to check out this video: https://www.youtube.com/watch?v=u0LySUgHwUU if you enjoyed this video, you may also want to check out my video about investing for teenagers: https://www.youtube.com/watch?v=nYGXl1AnZsw Want to learn more about paying yourself first with stock and investments? This video is for you: https://www.youtube.com/watch?v=0dm7C1dtzDo Disclaimer: I'm not a licensed investment advisor, and today's video is just for entertainment and fun. This video is NOT investment advice. Please talk to your licensed investment advisor before making any financial decisions.