Turning off SpongeBob and making them watch CNBC instead probably wont generate the enthusiasm youre hoping for.
But if you approach investing by making it fun, youll set them up for success later on.
Here are five clever ways to get started.
it’s possible for you to teach them about stocks by making them an investor in their favorite company.
Of course, buying entire shares can get expensive.
Butfractional sharesmake it easy to invest small amounts of money.
For example, as of this writing, a single share of Disney was trading for around $188.
To do this, youll need to open a custodial account through a brokerage.
Be sure to confirm beforehand that the brokerage allows for fractional investing, as not all of them do.
Also, look for an account that offers commission-free trades.
When youre investing small amounts, fees can quickly erode your returns.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Go ahead and start now, but be sure to bookmark this post so you might easily return later.
Well keep it updated as offers changes or expire.
They could qualify if they have a part-time job or earn money babysitting or doing odd jobs.
(Be careful in the latter two scenarios.
They could also be on the hook for self-employment taxes.)
You could sweeten the deal by matching their contributions.
So if your child earns $4,000 working, $4,000 is their maximum contribution.
If they chose to contribute $500 and you matched it, theyd still safely be within the limits.
Theyll benefit from thepower of compounding.
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3.
By talking regularly about college savings, you might also establish realistic expectations about what youre able to afford.
Stock market simulators likeWall Street SurvivorandHowTheMarketWorkslet you invest an imaginary portfolio of money.
You could have every member of the family create their own portfolio and make it a competition.
Then you could talk about why certain stocks performed well while others flopped.
That means you have anemergency fund, your debt is manageable and yourecontributing to your own retirement account.
Your kids will be able to see how small sacrifices add up over time.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
It sounds appealing right?
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