Getting Kids Started With Stock Market

Are you convinced that your kid should start investing? The early you the instill the value of money and investment in your kids, the better they will manage their finances and acquire a financial stability at a very young age. Whether or not your kids have the real money to invest, the stock market provides a great opportunity to learn about the world of finances. To get your kids interested in this is a real challenge. But before you can use your child's hard earned money into stock it would wise to experiment and play with investing.

Build a Mock Portfolio

Make it sound like an activity. Give your child a chance to look the various companies and pick their choice. The company that interests them the most. They can go about looking for the companies online or newspapers. Let them mention the date on paper and teach them to find out the current stock value of each company. Teach them to check the prices of the company every day, week and every month to track the progress of the company. You kid would be interested on seeing how the stock prices move.

 Transfer Funds From Your Account To Your Kids Account

You have to owe some investments that you think is worthwhile to transfer to someone else. You have an experience in the stock market and you hold some investment that can be transferred. Make your kid aware of the transfer and also other related documents that you transfer. You and your child can open an account to receive stocks.

 Follow Stocks Together and do Your Math Together

Your child and you can sit and track stock prices together. Make your child develop interest in reading about the companies in newspapers and magazines. Ask your child to find out did the stocks go up or down? If you have invested in a particular stock, find out what's the worth of the share in now? How much money you have made? What percent return is that? Make it sound fun so that you kid take a great interest in doing the calculations and make wise investment decisions.

 Look For Other Options

You can start by opening an account in one of the mutual fund company. So that investments will be in mutual funds rather than in stocks. Have an account with some online brokerage account where you can invest in stocks, bonds, ETF and mutual funds. You can also plan to buy a share and stock certificate from some online brokerage firm.