Those Young Investors:
Teaching Kids How to Invest

It's never too early for young investors to learn about saving money. As a parent or teacher, you can help children develop important life skills by teaching them about investing.

Learning about investing can be fun! We've got some great ideas for teaching kids about money and investing, and some wonderful incentives that will keep them motivated to learn.

On this page you'll also learn the basic skills that come out of investing. These lessons are important to know at any age, whether you're teaching kids or learning more about investing for yourself.

Beyond the Piggy Bank

Parents often take the piggy bank approach with their children, teaching them to save their allowance at home. However, at a certain age young investors will need to open their first bank account for their savings.

Opening a savings account is a wonderful way to teach a kid investing money skills. Most children's accounts don't require a lot of money to start up, and the bank offers many incentives for children to make regular deposits.

Like any savings account, a children's account will accumulate a small amount of interest over time. This "free money" is a great incentive for any kid and investing money soon becomes quite fun!

Lessons Learned in Saving

When you teach children about investing, you're also giving them a set of valuable skills for life. Here are just a few important lessons for youthful investors from our expert Dan Fournier:

Saving for a Rainy Day

It can be hard for kids to grasp the concept of saving, as they wonder "Why can't I just spend the money now?" However, when the time comes to spend that money (whether it's for an emergency or for a well deserved treat) they'll soon understand why saving doesn't always need an initial purpose.

Budgeting

It's hard for anyone, not just kids, to put away all of their money in savings. Remember that there is always a balance between spending and saving, and that's how budgets are made. Allowing kids to spend a bit when they save is a great incentive to keep them motivated!

Setting Goals

After opening a savings account, set an initial goal with the kids. How much money do they want to save this month? Is there a specific item that they want to save money to buy? Having these goals is another great way to keep kids motivated to save.

Young Investor's Guide

Before you start teaching young investors about saving, you'll need to have a good understanding of the topic yourself. Dan Fournier's investment guide is a great place to start, and a valuable resource to have at your side.

To learn more, visit the Ordering page on the left-hand menu. You can also continue to browse the kids investing pages below for more great topics!

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