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Step 1
Have kids do a simulated activity online before purchasing stocks. This will allow them to learn strategies and skills before trying the real thing. The Securities Industry Association offers activities that allow young investors to simulate purchasing stocks. They are given $100,000 of pretend money to build an online portfolio and master skills.
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Step 2
Check out My First Stock, which is a company that allows kids to purchase shares in their favorite companies. They can purchase stocks for companies like Disney, Mattel and Dream Works. Stocks can be managed online, and the company sends a stock plaque with a custom engraved message.
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Step 3
Companies such as eTrade are also a good option. Fees are low and you can manage your child's portfolio online. The site has many tools online such as resources for college education planning.
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Step 4
Make investing fun for your kids. Approach buying stocks online like a game with your child. This will make the exercise more fun for kids. Give your child a small amount of money to purchase stocks and practice investment strategies.
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Step 5
Assist your child with monitoring accounts. It will take a while before they understand when they should buy and sell stocks. Make sure you are always present while your child is making these decisions, but allow your child to feel like they are in charge.
