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5 tips to spark children’s interest in investing

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Creating an interest in investing with your children can pay off incredibly well for them down the road; however, getting them excited about the topic while they are young can be difficult. To children, immediate satisfaction is everything. Investing takes time and patience, and there is no immediate tangible reward for a job well done.

Here are five tips for creating a greater interest in your kids for investing.

Play to their interests

Very few children will ask about compound interest and the process of buying shares of a company. What children want to talk to you about is what they love: superheroes, dancing, trucks, sports, dolls, construction equipment, and so on. Use this to your advantage, The College Investor says.

For example, let's say your son loves Star Wars toys. They are his favorite thing and he would play with them endlessly if you allowed him. When the time is right, sit down with him and ask if he would like more of these. Then explain how through investing he can buy all the sets, spaceships and action figures he wants, if he is patient.

You could show him that Star Wars is owned by Disney and that as a company, Disney allows people to buy parts of the company. Explain that through earning money, your son could own part of the company that makes all of his favorite toys.

Explain term deposits

If your child is just starting to earn money, a savings account is a great first step in explaining how dividends work, especially with term deposits.

For example, with Mountain America Credit Union’s term deposit, you set aside funds for a set period of time — between six months and five years — and in return, you receive a higher return rate than with a traditional savings account. The longer your term deposit, the more you earn.

Term-deposit savings accounts are secure and some require as little as $5 to open. A term-deposit savings account is a simple way to set up an account you can use to teach your children about savings. Of course, the higher dividend on these accounts is also great for grown-ups who want to stash some cash away.

Use stock gift cards

US News suggests teaching your children about stocks at a pace that meets their knowledge and level of interest. One way to do this effectively is by giving gift cards allowing them to buy shares, or even parts of shares, of their favorite companies. A simple conversation explaining stocks and what it means to buy shares can excite young people, especially if the company involved produces something your child is interested in.

Give them the investing power

One of the best ways to learn about investing is to make some mistakes along the way. This also goes for your children, no matter their age. If they want to sell shares because they want to invest in another company, let them. Help them with research and the actual buying and selling process, but let them make their own investing decisions.


Teach them about transaction costs along the way and show them how much that new company value is going to have to increase for them to recoup those transaction cost losses. When kids realize that you are allowing them to make their decisions in an adult market, they will feel responsible and proud of what they have done, states The College Investor. They will want to make the right decisions and make you proud of them.

Have them set goals

Setting some motivating financial goals with your children while they are young is a great way to spark interest in investing. Ask them about what they want, and be excited about it. Investopedia suggests setting goals with your children and actively working on them together. This will help them feel empowered and passionate about achieving the goals they have set for themselves.

Not sure how to start your child's investing? Reach out to Mountain American Credit Union for help. Their programs and offers might be just what you need to get your child interested in investing.