From a Parent's Mouth to a Teen's Ear
Sure, we can solve quadratic equations, interpret Walt Whitman’s poems, and give you the symbol for any element on the Periodic Table, but ask us how to balance a checkbook or invest a stock, and even the best of us will crumble. It’s a strange thing, school. We learn a lot of things that, let’s be honest, we’ll never use a day in our adult lives; however, they neglect to provide us with the basics of how to spend wisely, conserve, and invest. And this is where you enter the picture, parents.
Below is an example of a “schedule” that you can use to talk to your child about investing basics:
Mon. | Explain the different forms of investing (Bank Accounts, CDs, Bonds, etc.). | |
Tues. | Lesson: Show your child how to make his or her own budget. Demonstrate by showing him or her what you do | |
Wed. | Discuss Retirement Plans (401 Ks, IRAs, Roth IRAs, etc.). | |
Thurs. | Lesson: Teach your child how to balance a checkbook. | |
Fri. | Explain the stock market to your child and how it works. | |
Sat. | Game: Sign up for Investopedia's stock game simulator and see who wins! | |
Sun. | Test Day. Just kidding! Talk about the importance of allocating assets. |
Need help?
Certificate of Deposit(CD)- A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. Remember though, the money cannot be withdrawn once put in without a penalty fee.
(Saving) Bonds- A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate.
401 K- A type of qualified retirement plan in which an employee makes contributions on a post-tax or a pretax basis.
Individual Retirement Account (IRA) - An investing tool used by individuals to earn and earmark funds for retirement savings.
- Katie Denshaw
