It’s never too early to teach children about money and finances — and that includes the stock market. After all, this generation is growing up in an uncertain economy where they’re more likely to be self-employed or change careers than settle into one job for 40 years. Understanding the principles of saving and investing helps them learn how to handle money once they’re adults, preparing them for stability and freedom. Some tips can help you successfully teach your children about the stock market.
1. Start With Saving
Before they can understand how to make money work for them, your kids need to see the value of saving. Even the youngest child can grasp the idea that if they save half their allowance for a few weeks, they can buy something special at the end of the month. Help them learn about delayed gratification; encourage saving on a regular basis.