Raising a Future Investor
- By Stephanie AuWerter
- September 21, 2011
When I was a teenager, my grandmother gave me a couple shares of Limited Brands. I had worked at The Limited that summer, and while I was focused on my employee discount, she was trying to get me to think bigger.
At the time, I was nonplussed. But today I so appreciate the sentiment.
If you’ve got kids, they probably aren’t learning much (if anything) about investing at school. And many parents are reluctant to teach them since they feel fairly clueless themselves, says Hollis Page Harman, author of Money Sense for Kids. Big mistake. Some ideas:
Child’s Play: What tips do you have for teaching kids good money habits?
Talk investing. Don’t make investing a taboo subject—even if you don’t know all the answers.
Stock-pick for fun. No money trading hands here. Each family member picks a stock, tracks it and discusses it, says Harman. After a few weeks, see who’s up, who’s down—and why.
Invest in a Roth IRA. Older kids with earned income from, say, a summer job can put cash into an IRA. (Accounts for minors need to be set up as custodial accounts.)
Buy a share. This can be tricky due to brokerage costs and other fees. Websites like OneShare.com make this a nice gift, but generally aren’t cheap.
Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
The content in this website with the exception of that provided by Charles Schwab have been provided by third-parties and/or prepared by DailyWorth who is not affiliated with, associated with or endorsed by Charles Schwab & Co., Inc. (“Schwab”). Therefore, the information contained within the content of the website that has not been prepared by Schwab should not be considered as approved, endorsed or recommended by Schwab. Schwab does not guarantee that the Information is accurate, complete or timely, nor does Schwab make any warranties to you regarding any results from using the Information. This also includes any links that DailyWorth provides as a courtesy to users of their website to third-party websites. Third-party websites are owned and operated by independent information providers (“IIPs”).
Interviews with Schwab employees created by DailyWorth are for general informational purposes only and should not be considered an individualized recommendation or investment advice. Investing involves risks, including the potential loss of principal invested. Keep in mind that diversification strategies, do not ensure a profit and do not protect against losses in declining markets and may not be suitable for you.
The content provided by Schwab is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab suggests that you seek professional assistance.
Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. (0413-2767)