How to explain the Stock Market to your kids - easily

We are trying to help our kids in making the right choices in education, personal finance and life in general as early as possible. One way to help our kids make sound financial decisions is by helping them understand how the stock market works. The stock market is such a force in the economies of the world and it has such an impact in our financial lives, that it will be a disadvantage if our children waited until college to learn the basics.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Internet
• Free time

1. 
   Teach your kids

   Explain the stock market to your kid by reading with her the business section of the newspapers. Go to the listings for the New York Stock Exchange in the paper. Find a stock your child is familiar with. Explain what each number for the stock you have selected means. Have your child track the price and the news of the stock over a week period. Point out the stock ticker symbol on the television.

2. 
   Teach your kids

   Explain the stock market to your kid by using books. There have been many books written for children and young adults to explain the stock market. One such book is “The kids’ money book”, there are many more. These books are specifically designed and written for children in language they can understand.
   
   Try a search on Amazon for investment or financial books for children. Go to the Public Library. The Library has many of these books that you and your child can borrow to find stock information.

3. 
   Teach your kids

   Explain the stock market to your kid by attending brokerage companies’ seminars. Use their resources to help you teach your child the stock market. Many brokerage or investment firms have free seminars for teaching children the stock market.
   
   They use their own teachers, books and stock market simulation games to teach children. The simulation games are very fun to play and they help children and adults understand complex financial concepts. Most companies offer stock information services free.

4. 
   Teach your kids

   Explain the stock market to your kid by taking her on field trips to places like the New York Stock Exchange, the Federal Reserve Bank and to companies in the Financial Districts in your local area. All these places have free resources that you can use to explain the stock market to your child.

[NuttyMomma]

on 2/7/2009 Helpful for some adults who never learned about it! thanks!!

[Scarlett9284]

on 1/14/2009 Thanks for the great resources on explaining the stock market to your kids! 5*

[bossypants]

on 1/9/2009 I wish I had had this sort of education when I was young! You've offered great resources and ideas for explaining the market to children. Thanks!

[Teachforever]

on 1/7/2009 Good idea. Hopefull it will be viable by the time they begin investing.5*****

[sneedc]

on 1/5/2009 Once I figure it all out, I'll share the information! lol Thanks!