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How To Teach Your Kids About Investing in the Stock Market

Want to teach your kids all about investing in stocks from an early age? These are the best ways to teach your kids about investing in the stock market.

By Stephanie GladwellPublished 6 years ago 7 min read
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The stock market can be a complex environment, especially for those who are new to it all. Adults who've never came across the stock market can certainly be confused by it. There's a lot of numbers rising and falling, a ton of unfamiliar titles, and lines going all over the place. Anyone who's foreign in the stock market will be lost. It can seem very complicated to certain people, but it's pretty easy to get an understanding of what the main concept is.

Since it's so simple, even children can understand it. That's why so many parents plan ahead and teach their children all about investing in the stock market. So once they get much older, they'll have all of the knowledge to actually start investing in the stock market. And teaching kids anything at a young age will make them masters in the field when they get older and begin investing in their 20s. If you want to show your kid everything about investing in the stock market, these are the best tips on how to teach your kids about investing in the stock market today.

First things first, show your kid the basics. You shouldn't overwhelm your child with everything all at once, it'll confuse him and even scare him from continuing to learn. You always want to start off slow, even for anyone who doesn't know anything about the stock market and is hearing about it for the first time.

That's why showing him Stash is the best first step in making your kid an investing genius. Stash is the best app that gives unlimited education on everything revolving around stocks. Stash is an actual coach that can navigate your kid through investing tips, get educated on the stock market, and learn how to become a healthier investor. The app also provides new articles and tips every day to build smarter financial habits and become more confident in the field.

Encourage your kids to save and invest.

Encouraging your child to save up and invest is one of the best ways on how to teach your kids about investing in the stock market. If you start to show them the beauty of investing and how it will certainly benefit their future, they'll be more eager to take on the concept. You want your kids to invest and be smart with their money—show them why it's important.

Kids won't get into anything if they're not persuaded into it. The best way to encourage them is mentioning that if they invest in the stock market, they can make a lot more money in the future. And I guarantee this will grab their attention... money can grab nearly anyone's attention.

Make investing a family activity.

This is without a doubt one of the best ways to teach your kids about investing in the stock market—by making investing a family activity. Kids learn a lot when the whole family gets into it. They gain knowledge from their parents and working together can teach them, too. So make it a family activity!

Turn the stock market into a game and show them the ropes in investing. When they see that everyone in the family is interested and involved in investing in the stock market, they, too, would want to be involved. This is a great way to grab their attention and allow them to absorb some stock market knowledge!

When it comes to investing in the stock market, you child should know how to manage their money, as well. That they should never put all of their eggs in the basket, but saving some for other things. Many kids don't know the importance of money and being smart with it. And as for investing, they shouldn't put in everything that they have.

Among the ways to teach your kids about investing in the stock market is with this app—BusyKid! BusyKid is a fantastic app that can easily show kids how to manage, save, spend, and invest their money. This is an ideal app on showing your kid how to use her money wisely when it comes to investing in the stock market. The app features children earning money through completing the parent's requested tasks and chores, invest in real stocks and follow the market, view their account in save, share, and spend areas, and much more.

Show them the risk and rewards in investing.

From how to teach your kids about investing in the stock market, you must show them the risk and rewards behind investing in the stock market. You shouldn't allow your child to learn about the stock market without scaring them a little with the risks and getting them excited about the rewards. You child should know anything and everything about investing in the stocks, especially low-risk investments.

Show your child that in real life, investing isn't a game. That putting too much money isn't the best choice and it's all about gambling. So use your money wisely and know which stocks you're buying. And mention it to them that there are certainly rewards that comes with putting money into a stock. When you put in money, you're expected to gain money out of it, too.

Guide them into having a strategy.

Every investor has a strategy in investing in the stock market. Almost no one blindly invests. They watch the market, understand the concept, and invest based on their understanding. They also don't put in their money on just any stock; they view which stocks they believe they will gain the best rewards back.

So show your child that the only way to be fully successful in investing in the stock market is by having a strategy. When they have a strategy and stick to it, this should certainly be beneficial to them in the future. Understand the market, be wise with the money, and they're sure to gain great rewards in the aftermath.

Your kids can actually open up their own custodial account with your help and get started in investing in stocks. With the Stockpile app, they can check their stocks whenever they want and even place trades that goes straight into your smartphone for approval. Even though your kid can invest in the stocks, it'll always ask for you approval just in case they're investing in the wrong stocks.

This app literally gives kids the real opportunity to invest and check out the stock market. Children learn better when they're actually doing it, and this goes for anyone. You won't fully learn and understand if you're not actually investing. That's why this app is among the best ways to teach your kids about investing in the stock market.

Teach them through stories and the 'plant' strategy.

Showing your children how to invest in the stock market through story telling is certainly among the ways to teach your kids about investing in the stock market. Kids absorb a lot through storytelling and if the story is interesting, it'll stick to them even more. You can tell them a story about an investor and how he managed to make it big when investing in the stock market. And always end the story with the investor being rewarded from his investments in the stocks. This will inspire your child to be just like the investor in the story and strive to act like him.

You can also use the plant strategy. You can tell your child that the only way for your plant to grow is by watering it. And that's basically the same concept as investing in the stock market. The more money you put into a stock, the better the outcome you'll get. But never invest all of your money; you'll overwater the plant.

Instead of reading a storybook to your child before bed, have them get into this book that's ideal for showing them how to invest in the stock market! Money Sense for Kids is a great book that shows illustrations about establishing their own bank account, writing checks, and even about the stocks and how to invest in them. Since this book is mainly based on illustrations, this makes it way easier for children to understand how to use their money wisely.

The author of this book gives ideas on how children can earn, save, budget, and invest money on their own. The book also features puzzles and games with the theme of money. Through colorful illustrations, puzzles, and games, your kid can easily understand how to use money by reading Money Sense for Kids!

Lastly, from the ways to teach your kids about investing in the stock market is with this app. Best Brokers Stock Market Game can enhance your child’s knowledge of the stock market and show new trading strategies to avoid losing real money. This app is also the only stock exchange game with over 60,000 realtime stocks and cryptocurrencies.

While your kid can start with 25k, they can own their stock and even open orders. And if their friends have this app, too, they can connect with their friends or other users and chat about strategies and the capital market. Your child can learn to be the best broker through this awesome and knowledgable app.

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About the Creator

Stephanie Gladwell

Mother of two, educator of many. Teaches middle-school biology and chemistry. Always interested in exploring the unknown.

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