Teaching kids about investing is a great way to encourage life-long money management and wealth-building habits. But given how complicated investing can be, how do you get started?
Well, forget about all the complex technical jargon (for now). Instead, help them identify brands they like, explain briefly what stock ownership is, and then buy a couple of shares of the companies behind those brands for them. Periodically show them how those stocks are performing and what the different financial statements mean. Leverage their excitement for the brands and products they like to teach them about stock investing!
Get started by talking with them about the companies behind the brands they love:
Entertainment and Gaming Companies
If your children enjoy Disney, Star Wars, or Marvel movies and toys, buy a share or two of Disney stock (DIS). You can also choose from popular toy companies like Mattel (MAT) and Hasbro (HAS). Mattel’s toys include Barbie, Matchbox, Fisher Price, and Thomas & Friends, while Hasbro’s toys include Transformers, Nerf, Power Rangers, Monopoly, and My Little Pony, among others.
Is your kid a gamer? Consider two of the major console manufacturers — Microsoft (MSFT), the maker of Xbox, and Sony (SONY), which manufacturers PlayStation. Both trade on U.S. stock exchanges, while Nintendo (NTDOY, NTDOF) trades on the Japanese stock exchanges.
Some other businesses behind the games your kids may play include:
- Activision Blizzard (ATVI), which produces games like Call of Duty, Worlds of Warcraft, and Guitar Hero.
- Electronic Arts (EA), whose games include Madden NFL, NBA Live, and Star Wars.
- Take Two Interactive (TTWO), maker of Grand Theft Auto, and NBA 2K, among others.
- Tencent Holdings (TCEHY), which partially owns games like Fortnite
Does your child love pizza? Papa John’s (PZZA) and Dominos (DPZ) are possibilities. Of course, Burger King (QSR) and McDonald’s (MCD) are always popular, as are Taco Bell, Pizza Hut, KFC, all owned by Yum Brands (YUM). Dunkin’ Donuts (DNKN), Ben & Jerry’s (UL), and Dairy Queen (BRK) are good choices for dessert enthusiasts.
Clothing and Retail
Does your kid live in the mall? They may be familiar with (and excited about) some of these clothing companies and retailers:
- Abercrombie & Fitch Company (ANF)
- American Eagle Outfitters, Inc. (AEO)
- Foot Locker (FL)
- The Gap (GPS)
- The Gymboree Corporation (GYMB)
- Nike (NKE)
- Under Armour (UAA)
- Urban Outfitters, Inc. (URBN)
Some other brands your children may be aware of and excited to invest in include:
- Amazon (AMZN)
- Facebook (FB)
- Google (GOOGL)
- PayPal (PYPL)
- Target (TGT)
- Twitter (TWTR)
- Uber (UBER)
- Walmart (WMT)