how to teach kids about the stock market

How to teach your kids about the stock market?

Sep 06, 2021 · Teach your kids about the stock market at an early age. Choose age-appropriate topics to cover. Start out slow and build on the concepts. Use exciting learning materials. Teach with real-time examples. Allow your kids to manage their money. Invest in novelty stocks for practice. Build on what your kids already know.

What is the best way to learn the stock market?

May 24, 2021 · Explaining why people—and kids—may choose to invest. As you’re teaching your kids how the stock market works, try talking to them about why people invest in the first place. Explain that investing can be a powerful way to create wealth over the long term that helps people save for goals, such as going to college, buying a house or retiring from work.

How to explain the stock market to kids?

Jun 29, 2020 · 1. Start with companies your children already know Johnson first became intrigued with investing in the seventh grade,... 2. Involve your kids in the investing process One of the biggest benefits to parents today is that investing is more... 3. Build upon these ideas

Should kids invest in the stock market?

Aug 01, 2021 · Activity: Use your kid's favorite building toy as a kind of stock market game. Build a construction or building together, explaining how so many different pieces may come together to form a whole structure. For extra fun, race to see who can build a building faster – have more people on one team than the other.

YouTube Videos and Podcasts

To explain why a company lists on the stock market and how that works, I recommend the YouTube video How the Stock Market Works. This is an animated 10-minute explanation that will have the kids laughing and learning at the same time.

Lesson Planning

Learning, Earning and Investing has lesson plans on all aspects of the stock market. The link here is to the middle school book, but a high school one is also available. In addition, there are many free lesson plans in the “In the Classroom” section of stockmarketgame.org.

Interactive Resources

To give your students an ‘inside’ view of what it is like to buy and sell on the stock market, sign them up for the Stock Market Game. Grades 4 and up, all over the world, play in teams. Here in the US, the students receive $100 000 (virtual money, of course!) and 10 weeks to invest that money.

Books

Books are a great way for parents and students to learn about the stock market together.

Teach Your Kids About the Stock Market at an Early Age

In the investing world, it’s generally better to get involved in the stock market sooner rather than later, even if the investor just chooses plans that track an index like the S&P 500. Getting involved in the stock market sooner rather than later means that the investor can take advantage of principles, like compound interest, that much sooner.

Choose Age-Appropriate Topics To Cover

Depending on how old your children are, you may need to start with basic concepts such as:

Start Out Slow and Build on the Concepts

Children who have already mastered basic math concepts and understand simple equations can practice calculating things like profit, loss, and compound interest. Middle school students, especially eighth graders, can usually start working on intermediate concepts that only require a little more math and terminology to understand.

Use Exciting Learning Materials

Finding age-appropriate materials for teaching about the stock market can be a challenge at times. You may worry that most of them are too simple for a middle school or high school student or too complicated for an elementary school student. However, this may be a matter of knowing where to look for age-appropriate materials.

Teach With Real-Time Examples

Even with trading simulation “games,” keeping young children interested long enough for them to get the hang of the basics of investing in the stock market can be a challenge. It may help to keep their attention span in mind and take it in stages that they can handle.

Allow Your Kids To Manage Their Money

If your kids are successful in their lawn mowing business, it’s essential to share your knowledge but also allow them to oversee how their money is later spent or saved. There are many ways how to save money as a high school student that is appropriate that you can educate your kids on.

Invest in Novelty Stocks for Practice

Novelty sites like Unique Stock Gifts offer single shares in well-known companies like Apple and Disney. It comes with a “novelty” stock certificate that children could hang on their walls.

How to introduce the idea of saving

You can start exposing your child to foundational concepts by introducing them to the principle of saving. Make the process hands-on and visual by having your child save in jars so they can watch their savings accumulate over time.

How to explain stock basics

When your children are old enough, you may be able to introduce the idea of owning stocks. They’re probably already familiar with publicly traded companies that make the products they may already use, such as Mattel, Kellogg’s, Nintendo, Disney or Apple.

Opening a custodial account for your kids

To give your child a more in-depth experience of buying and selling stocks, consider opening a custodial brokerage account for them. 1 With a custodial account, you can make monetary gifts and retain control of investments and withdrawals until your child reaches adulthood at age 18 or 21, depending on the state in which you live.

The Stock Market: What is It?

The stock market is where an assortment of shares from various companies can be sold and bought and is often an indicator of its health. Today the stock market is designed for people to profit from and contribute to companies while lowering individual risk.

Stock Market for Kids

The stock market can be described as a forest full of trees. The forest is full of trees that depend on large numbers to survive, yet the entire forest's overall survival rate doesn’t depend on the success of a single tree species.

Stock: What is It?

Stock is more than just a part of a company. While the stock is often said to be small ownership of a company, the stocks don’t usually translate to much power. However, owning enough stock can let you vote on issues in the company, such as electing board members.

Stock Market for Kids

Owning stock is similar to owning a couple of trees in a forest. You’re able to buy or sell as you see fit.

Final Thoughts

There is so much to learn about stocks, especially when you’re talking about the stock market for kids. You can teach your kid valuable lessons and improve their financial literacy.

Free stock market games for students and kids, stock market board games, and high school investment competitions to teach your child how to invest

One of the biggest requests I get from parents and teachers is for free stock market games for students and kids.

Free Stock Market Games for Students and Kids

These free stock market games for students and kids are a great way to not only introduce many stock investment concepts, but to go through the trail-and-error process (without risking any real money) so that they self-discover the lessons they’ll need to successfully invest in stocks one day.

High School Investment Competitions

Now we get into a really fun portion of this article – because not only can you take a group of kids or students through a stock market simulation…but you can also lead them through an investment competition (with prizes)!

Stock Market Board Games

Perhaps you don’t want to get involved with an 8-week stock market simulation game, or a 10-week investment competition with your students.

Why do people buy stock?

Many reasons, actually. When a person buys stock in a company, this gives the company money to make improvements in the business. The company might be able to hire more workers, or it might be able to afford to research the latest and greatest technology so it can create new products.

What is a stock?

The name gives you a big hint: stocks! A stock is actually a piece of a company. It's not a physical piece, like a brick or window, but a part of the ownership of a company. Stocks can be bought and sold through the stock market, and they can be different prices depending on the company and how it's doing at the time.

What happened to the stock market in 1929?

In 1929, a huge stock market crash caused the Great Depression, a time in history when many people lost jobs and homes. People lined up at banks to get all of their savings during the Great Depression.

Did the stock market improve after the 1929 depression?

Eventually, the market improved and life got much better after the depression. Since then, there have been many historical events in the stock market, but none so devastating as the crash of 1929. Lesson Summary.