Investment clubs can be a fantastic opportunity for kids to
learn about investing. As they learn about investments they
will develop a better understanding of money.
How to get started
The first step is to find a kid-friendly investment club.
Browse investment club websites to determine if there are
special sections devoted to teaching children or teens
about investing. Speak with your neighbors, friends and
colleagues to find out if they know of any investment clubs
for kids. If you can't find a suitable club you can start
your own. Consider getting together with other parents to
start an investment club for kids.
Choosing a portfolio
One of the hardest things with any investment club is
deciding on the specific investments to make. Children
have less money to work with than adults so it is important
to stick to stocks that are well within their budget. What
is most fun for kids is to choose stocks from companies
they are familiar with. Think about clothing, food,
computer, game software or other companies they use
products from.
Learning about stocks
Before deciding on what stocks to invest, teach your kids
to learn more about the companies they are considering.
Children can learn more about a company from its website,
by reading its annual report or by looking at its daily
stock reports and trends.
Finding money to invest in stocks
Children can start by saving their allowance to invest in
stocks. Open a savings account at a local bank so they can
easily make periodic deposits. Teach children to save part
of the money they receive as birthday or Christmas gifts.
Older children can be paid extra for completing additional
chores around the house. When children are old enough to
work outside the home encourage them to take on a part-time
job. Parents can help children by setting up a matching
program where parents will match the investment amount the
child has.
Keeping track of investments
Choose an investment club that offers interactive charts
and reports. This will allow you and your child to record
and keep track of their investments. Set aside a certain
day of the week to spend an hour looking at how the stocks
are doing. Make sure to stay on top of the investments and
sell stocks when necessary. Follow the market trends using
the newspaper or Internet to determine how you think the
chosen stocks will perform. Teach children to make a
connection between current events and stock trends.
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Investing just isn't for grown-ups only. Even young
children can learn about investing through an investment
club for kids. Learn more about joining or starting an
investment club at
http://www.aboutinvestmentclub.com/art-kids
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