Making Investing Cool
Updated: Aug 4, 2019
Talking about investing with your children can seem like a bore to them. Most children find it hard to think about long-term goals and instead relish in the immediate rewards. So how can you get them to really think about the benefits of long-term investing? All the best lectures in the world may not work. It is best to get them to experience it for themselves. After all, the best way to learn is through play.
A great and easy way for them to understand is researching Blue Chip stock. Blue chip stock is believed to get its name from the blue poker chip, which happens to be the most expensive chip. Blue chip stocks generally tend to be a safer investment. But actually, having with your children participate in investing blue-chip stock, you both will have a hands-on learning experience what it takes to save and how to invest wisely.
There are fun stocks to purchase that your children may be more inclined to participate with. They can buy Disney stock and it’s fun to explain to them that they own a bit (if not very, very small) part of the company! Let them choose where they would like to invest their money and show them how to research a company. Explain the different risks they can take.
A great book on this to check out is called Blue Chip Kids by David W. Bianchi. This is a wonderful book that easily explains the ideals of investing to the younger generation. It comes with a multitude of simple illustrations and examples that clarify what investing is all about to kids and how important it can be. It teaches children how to invest wisely and how to manage money proficiently. Getting your children to start young when it comes to investing, there is no limit to their wealth they can have for their future.