The tender age phase leaves a striking impact on kids. Therefore, if a kid’s stock market education is properly undertaken in their tender age, it can inculcate a responsible outlook and understanding of financial issues in children. Children, who have acquired great deal of expertise in completing several ‘dangerous’ missions on their gaming consoles and play stations, can definitely assimilate stock concepts. It may prove to be a bit of an effort in some cases, but parents and teachers can be assured that it is really a worthy effort.
The stock market for kid program can begin as a very casual study and then become more of a formal kid’s stock market education, as they grow into their youth. The educators, be it the parents, neighbors or teachers, all have to be thorough with the basics of stocks and investing before getting started. This is arguably the most important requirement because both history and present have proved that not even regular investors have the right knowledge of stocks. Therefore, it is better to learn the fundamentals thoroughly before imparting the idea to kids.
A great way to begin is to trade you in companies or brands your kid is familiar with and is very much interested in. As you go through the procedure, make sure that the kids are with you, by your side every time you make any move. The stocks of McDonald’s, Coca-Cola, and Sony (because of their play stations) and so on, can be very good investment options. Kid’s stock market education can focus on the importance of different happenings of the business world. For example, if there is a big acquisition of Sony software by Microsoft, resulting in huge changes in the stock prices for both and the market, make sure that these events are amply discussed and brought to the knowledge of children.
The best way to learn anything is by doing it. There are a variety of programs offering education in stock market for kids. If you still want to play safe, there are many games and software available in the market, and of course on the Internet, which can simulate stock market and related conditions. Most of these dummy software and gaming products have an exact remodeling of the way a stock functions, with all its ups and downs and investment options.
Another good option is to get the kids invest in securities and guide them all along. There are many companies in the market which allow for very low investment options in individual stocks. Direct Investment Plans is one such initiative, which includes many major US companies offering small stock investing options. These can get some really good firsthand experience for the kids in order to invest in stock market. Mutual funds can be a safe bet to experiment with investments, with the kid’s stock market education in focus. It entails relatively less risk, and many of these funds also offer space for very small initial investments.
Experience is the best teacher. This simple adage cannot be more relevant than in the knowledge of stock market for kids. The more a kid takes up bold initiatives in investment, the better it would be for his understanding. Even in the worst case, a kid would at least understand the value of money and appreciate the financial responsibilities of the elders, which in itself is a big achievement.