Friday, January 29, 2016

Show Your Kids What a Stock Is With This Simple Infographic

Today’s fantastic family finance article is:

The stock market has proven to be one of the most effective ways to make your money grow over the long term. If kids have one thing on their side we don’t, it’s time. So, the sooner they understand the basics of stocks and investing, the better. Use this simple stock infographic to introduce your child to the definition of a stock, how stocks are traded, and basic investing definitions like:

  • stock exchange
  • initial public offering
  • shareholders
  • profit
  • retained earnings
  • dividends
  • broker
  • index

Learning about how an individual stock works is a good start. But, please, please, please, don’t stop there. Before your kid makes that first serious investment, be darn sure she knows about low cost index funds, dollar cost averaging, and holding for the long term.

Teach your kid diversified, consistent, patient investing for the win!

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