And you can make it more real to your child every day. A Prudential Insurance Co. survey showed that preschoolers could identify corporate logos almost as well as a control group of adults. Starting at age 5, when you buy them a toy or a hamburger, explain that these are made or sold by companies that let people like us become part-owners if we re willing to invest the money. The buyers are called shareholders. No, you don't need to do this every time.
Little ones get the big picture fast, especially if they watch commercials on television.
Along about age 7, ask your child to pick a favorite soda or toy. Then purchase a share of stock in that company and join the dividend reinvestment program. At about age 10, take the next step and actually explain the stock market. Learn the history and culture of the exchanges. All exchanges can be visited at their own Web sites.