Expose them to investing
With investing, parents want to jump right into teaching kids to buy stocks, but that’s not the best place to start. We have to get them to walk before they can run. This idea of “Pick a Winner” before they have a basic foundation of core financial principles is like teaching a youth basketball player to dunk before they have learned to dribble. Dunking is cool, but there is no dunking until they can dribble the ball to the basket to make that dunk. This lesson details prudent investment principles to teach your child.
1) READ THE CHAPTER
For information and a deeper dive into having money talks with your kids. Read the chapter with relevant financial literature to give you a sufficient foundation on the topic. Order your copy of the book below.
2) LISTEN TO THE PODCAST
Listen to this lesson’s episode where I’ll walk you through the questions to ask your kids during the conversation as well as the likely responses you’ll hear from them.
3) SEND THE TIKTOK
Send this video to your child, so you can set the stage for the topic you’ll be discussing, in a language they understand.
@totalcents Diversifying is a key to successful investing. #protectyourwealth #moneytalks #financialliteracy #finance #moneytok #learnitontiktok #personalfinance #investing #investing101 #diversifyyourportfolio ♬ original sound – Total Cents
4) HAVE THE MONEY CONVERSATION
Using your printed one-page conversation guide and enjoy the dialogue with your family to get them financially launched. Now’s the time to discuss and start the conversation.
Additional Lesson Resources
- Remember the Vine: A Story about the Value of Time in Growing Capital (Edwards)
Know the expenses of investing before you invest. Understand both sides of assets allocation. Seek out proprietary companies with sustainable revenue and cash flow growth. Keep your winners, sell your losers. Understand that fear creates opportunities and more In the final analysis the purpose of the seminar is to combine a high quality tax efficient growth stock portfolio which will over time
- The Wall Street Journal Guide to Understanding Money & Investing Initiates you into the mysteries of the financial pages—buying stocks, bonds, mutual funds, futures and options, spotting trends and evaluating companies. For those who are curious but intimidated by everyday financial jargon, this guide offers a literate, forthright and lively alternative.
- Growing Money: A Complete Investing Guide for Kids (Karlitz & Honig)
Adults can have a hard time understanding investments. Demystify the world of stocks, bonds, mutual funds, and savings accounts for your children with Growing Money. Chapters on how banking works, what type of investor (high-medium-low risk) you are, how stock exchanges work, how to read the financial news, and much more are included. Written in an easy-to-understand style with plenty of current examples, kids will gain a better understanding of what they see in the news, and how to handle money in their own lives. 143 newsprint-type pages, softcover. This is an informative book to read; there are no workbook-type exercises.
- A Kid’s Guide to Stock Market Investing (Orr)
- The Young Investor: Projects & Activities for Making Your Money Grow (Batemen)
- Grandpa Beck’s Cover Your Assets Card Game
- The Intelligent Investor (Graham)
- The Little Book of Behaviorial Investing how Not to Be Your Own Worst enemy (Montier)
- “The Motley Fool Investment Guide for Teens” by David and Tom Gardner
David and Tom Gardner are the founders of The Motley Fool, an investment website. In “The Motley Fool Investment Guide for Teens,” they provide the same useful advice for junior high and high school students, in the same humorous and readable style. The book is in two parts. Part I, “Eight Steps to Wealth,” covers the basics of personal finance, including budgeting, saving, and spending. Part II, “The Search for Greatness,” covers the details of investing, such as finding the best stock market picks and managing your portfolio. Part of the book’s appeal for young people is its focus on financial freedom. It shows how money can help them gain control of their own lives — something teens are always eager to learn.
- Khan Academy: (Stocks & Bonds and Taxes)
- Brian Buffini Podcast on Inflation https://podcasts.apple.com/us/podcast/its-a-good-life/id1089027054?i=1000554807013
- Council for Economic Education: Investing Video
Financial Literature (FinLit)
- FINANCIAL BEGINNINGS https://www.financialbeginnings.org/download-materials/?topic=Financial+Foundations%7EInvesting&learnerlevel=High+School&resourcetype=&role=Parent%2FGuardian&listview=
- Stock Market Game