Tips to Teach Investing to a Child

It’s never too early to teach kids about investing. If you want your child to be financially responsible, then talking to them about investments is an important step. 

Talking to Kids About Investing

Are you teaching your child about investing? As they become aware of money and other financial concepts, you’ll want to start familiarizing them with investing knowledge.

Tips to Teach Investing to a Child

If you want to make your child comfortable with investing money, you’ll first need to instill comfort with the concept of money in general.

1. Include Kids in Financial Conversations

Tips to Teach Investing to a Child

By introducing the idea that—in stark contrast to a bank account or banking app your child may already have—stocks act fundamentally different and involve variable levels of risk and return, your kid, they can begin to understand their benefits and drawbacks.

2. Talk About Stocks and Bonds

Tips to Teach Investing to a Child

Diversification is key for investing. Unlike a bank account, which holds all your savings in one place, sustainable investing requires buying a number of assets or one asset which holds several like an index fund.

3. Start with a Savings Account Before an Investment Account

Tips to Teach Investing to a Child

It only makes sense to narrate your ideas of investing through stories. This will involve them in your investing activities and keep them engaged wanting to learn more.

4. Teaching Your Kids Money Management with Stories

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