Start Kids Young
Kids stock market education should be taught, beginning at an early age.
The stock market may seem too advanced for your young one. But as with anything, the younger your start the better you become.
You will know whats appropriate for your child. His age and understanding will pay an important factor in determining this. Many children would rather play video games. But, it is your job to make it interesting.
Make Financial Education Fun
Kids stock market education should be fun.
Good news, this is not too hard. There are just a few basic things you need to understand.
Find a system and stick with it. This is just like with basic parenting. So, you already have the basics down.
Kids like games. Make learning a game. Put them in competition up against their friends. They will be doing it for the prize and you will be doing it for they’re future.
Create The Rules And Stock With Them
All kids stock market education games need rules.
Start by telling your kids to pick a stock. This can be done online through paper trading. They can buy stock long or short stock. You may want to stick with buying long till they get that down.
You can put them in competition up against they’re friends and siblings.
Be creative. Kids get excited about small things. So, you can give them rewards such as games, special trips (mini golf, chucky cheese), or cash.
You know your kids better than anyone else. So, play to your kids’ attention span in a way that they don’t loose focus.
Getting The Knowledge Snowball Rolling
Now begins the learning part of kids stock market education.
After you have a system set up, you can start from the beginning teaching them actually which stocks to buy and which stocks to short.
Kids learn about things that happen in the real world. If not on TV, then at least in school. Since most things that happen in the real world effect the stock market, this can be a good learning experience.
You can talk to your kids about current economic events that they would be interested in and how they relate to the stock market.
More Advanced Investing
In time you may want to introduce your kids to technical analysis, which is my preferred trading method. Technical analysis is the other way to research stocks.
With this technique, you strictly focus on the stock chart. You can overlay it with indicators and oscillators. But, you will want to start with the basics: price, volume, and long term moving averages.
Remember, start early. Create a game that works for you and works for your kids. Then stick to it.