The Complete Easy Guide To Investing For Parents
Table Of Contents
- Why You Should Help Your Kids Invest
- How to Get Started
One of the life lessons that many parents teach their children from a very young age is the value of saving money. But in reality, one of the bigger financial opportunities for kids is investing in the stock market.
We live in a world with very little education about investing for kids and teens. This is crazy because investing for teens and kids is such a big financial opportunity.
You don’t need to know much about investing to teach your kids about it, because that’s what Investing For Kids By Kids is about.
We are dedicated to teaching kids how to invest, and we try to make it as simple as possible! And since we are very relatable and understand how to teach investing to kids and teens, we add our personal insights to our products.
Why You Should Help Your Kids Invest
I believe that investing is a great opportunity for kids and teens, because of compound interest. Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it… earns it. He who doesn’t.. pays it.”
What he means by this is that compound interest is very powerful. Interesting fact: the human brain cannot grasp exponential curves. The more you invest in something, and for a longer time, the greater your returns will be.
When you have a high compound interest rate, the money will grow faster. With this in mind, it is wise to start saving early on and invest your money wisely.
If you are not getting any returns with an account that pays little or no interest at all, then take your funds elsewhere where they can be compounded into something larger—something more powerful… such as the stock market.
How to Get Started
We can teach your kids how to invest in the stock and even crypto markets. Just check out our wide variety of products.
If you feel comfortable enough to let them get started, you can start teaching your kids how to invest by letting them set up their own brokerage accounts.
It’s easy to get your kids interested in investing by simply setting up a brokerage account (the best one is Greenlight) and letting them choose how much money they want to invest on their own.
We recommend starting a Greenlight account. The Greenlight investment and debit card kids app offers flexible parental controls for each child and real-time notifications of every transaction. The company is releasing an investment platform that aims to teach parents how to explore stocks and ETFs.
The sooner you can get your kids to invest, the more likely they are to develop better financial habits and become rich over time. Teaching your kids how to invest can also be a great way to encourage smart savings and spending habits long before they’re adults.
By showing kids how money can make more money, you can get them interested in investing and teach them the importance of investing in the habit of investing from an early age.
As your child gets older, encourage him to invest more of his savings in stocks, bonds, and cryptocurrencies; you can help manage their portfolio while still allowing them to take the lead.
Even if you don’t know the difference between a stock and an ETF, we are here to help. See our variety of products, including the podcast, the book, and our growing list of articles.