Another important way to teach kids about money and investing is to give them an opportunity to invest, either by buying shares in a mutual fund or by selecting individual securities. Help kids recognize financial milestones by investing together for specific goals. Younger children may have modest financial goals, such as buying a camera or a new bike. Investing a small sum of money, perhaps a portion of a weekly allowance, in a conservative mutual fund will enable kids to understand the process of investing. Reading mutual fund statements together with kids helps them understand important concepts such as investment returns and fluctuation.
College is an important financial goal for most families.
You may want to involve your kids in budgeting for college expenses and in the investing process as well. Inc. All rights reserved.