How to get your kids interested in money management

For years, I tried to get my children interested in money management and saving their money for things they wanted. Mommy can’t always foot the bill for extravagant desires like those fidget spinners and the entire Major League Soccerball collection. Not too long ago I saw an article on social media about a young man who had invested in his favorite sneaker company with the help of his mother. The experience spurred his interest in further investment and he owned several stocks by the time the article was written.

Leverage what Your Kids are Interested in

Tip #1: Leverage their interest in music - How to get your Kids Interested in Money Management

That article got my wheels turning. My 15-year-old son loves video games, soccer, and his phone and my 13-year-old daughter loves books, electronics, music, and plays soccer as well. With a small allowance budget for each of them to utilize, I tasked them with researching the cost of shares in companies that relate to their hobbies. My son looked into Sony, T-Mobile, and Apple while my daughter opted for Amazon, Samsung, and Barnes and Noble. Based on their research, they determined how much a share was and how many shares they needed to buy in order to reach their goals. The best part of all of it was that investing in stocks gave them the chance for their money to actually grow — if they could exercise patience and did their research well.

Using Shares to Pay For Their Wish List Items

I was totally shocked with how committed they were to this project — I believe it was the fact that they’d be making money off things they interact with daily. My son loves the fact that he can sell shares at any time if he wants to buy the newest video game or some costly new shoes. He wears a size 12 by the way. Size 12’s are NOT cheap!  And on my daughter’s wish list when she’s ready to cash in a few shares? A rabbit and a guitar. What a combination!

Starting Early in Money Management

Tip #2 Investing in stocks with allowance money - How to get your Kids Interested in Money Management

The sooner you educate your children on the benefits of investing and saving, the better. Start them young and they’ll develop good habits that will shape their spending and saving as adults — I sure wish I had received more education on investing and saving when I was my kids’ age!

How to Set Up a Stock Exchange Account for Your Kids

To get started you should do some more research on investing to determine which account option is right for you and your children. Talk to your bank or a local credit union, investigate online trading websites and stock brokers — some of them may have low fee plans for minors. If you have a 401K or IRA plan, see if they have a way to involve your kids. Find out whether the shares will be in your name (and will need to be transferred when your kids turn 18), and how the fees and taxes will work. With a proper plan and education, your kids will be on their way to buying you your dream car in no time!