Does simply giving the grandkids money or gift cards also leave you feeling disconnected or even unappreciated? Try Grandma K’s successful strategy: Focus on investing rather than spending! Grandma K usually gives her grandkids certificates for birthdays, Christmas and graduations—certificates for shares of stock, not gift certificates to spend at the mall. It’s a great idea that (hopefully) will someday pay dividends! Additionally, helping grandkids invest in stocks is a good way to teach them about saving for the future.
Teaching my grandkids about stocks? That sounds complicated.
It’s really not! Learning to save and invest wisely is no different than learning to play piano, throw a baseball or be polite. Once you have a good idea of how to get started, the process becomes much easier (and fun). When you’ve got the hang of it, you’ll be surprised how quickly kids pick up on these things too. After all, don’t we all model behavior around us?
Grandparents make great teachers for all things, investing included.
Even long-distance grandparents can be investing mentors! Often grandparents have the time to help, and the desire to pass along their wisdom. Plus they’ve seen a thing or two after living through many economic ups and downs. Sharing these experiences with kids is a great way to help them understand an investing philosophy. Why save and invest anyway? Why not spend, spend, spend? Grandma has an answer.
If you’re a seasoned investor, you might already own shares of stocks suitable to gift. Not a stock market guru? Become a beginning investor and learn right along with the grandkids.
Helping your grandkids invest in stocks – how to begin:
- Ask a financial educator for resource materials
- Ask your librarian for beginning investor resources on the shelves
- Find tips at www.MoneyGodmother.com
- Read a beginner book together, like Stock Market Pie: Grandma Helps Emily Make a Million
- Join a local investment club or take an investing class
No matter what the level of expertise, grandparents can offer grandkids a sample taste of stock market pie by giving a share of stock, opening a joint account and/or starting a Dividend Reinvestment Plan (DRIP). To find Dividend Reinvestment Plans, a good website is www.dripinvestor.com.
Now, keep investment conversations going! You’ll get to know grandkids better in the process by talking stocks with them year round. And, many grandparents will be surprised at how quickly the young investors develop. They might even teach you about a stock or two.
Learning to invest doesn’t require fancy equipment, new uniforms, special shoes or a lot of money. Teaching skills to help your grandchildren build wealth is not an expensive proposition…but failing to teach them is.