Why does the man have to be so sensible!! Sooooo …here are some suggestions for explaining the basics of stock and the stock market simply to your kids. Companies need money to help them grow.

They use it for all kinds for things like buying materials to make their products, developing new products, building plants and hiring people to work at their companies. Why Do People Buy Stock?

Shareholders, as stock buyers are known, hope to buy shares at a low point, hold on to them for a while and finally sell them at a high point. This is one way people make money from stock ownership. If your kids are nuts about PS3, they might be interested in knowing that Sony Corporation NYSE: So when you buy shares of Sony, and its profits go up because lots of people are buying PS3 systems, the value of your shares may also go up.

Once again, the forces of supply and demand are at work. Plus, sometimes companies give some of their profits to shareholders with cash payments called dividends — this is the other way to make money from stock ownership. Which Came First, the Stock or the Stock Market? Anyhow, the stock market is where shares of stock are bought and sold, called trading.

There are stock markets in a number of countries in the world, but in the U. This is something you and your child can watch together and discuss over time see my next blog….

Why Should My Kids Care About Stock? Financial markets are a driving force in our world, so having a basic understanding of how they work is essential to becoming truly money-smart kids. Through involvement in sports, music and community involvement projects, we try to teach our kids about good sportsmanship, team play, responsible citizenship, etc.

What is a stock market - wugadukucevu.web.fc2.com

Getting grounded in handling and growing money should absolutely be part of that discussion because it too is essential to mature adulthood. Kids need to know that there are various levels of risk involved in all stock investments and the better the chance for high reward from an investment, the more risk there is for losing money.

Stock Basics Tutorial

So good research, strong companies and lots and lots of patience are necessary. Special Offer Bundle - lifetime access to the Premium version of FamilyMint!

How the Stock Market Works | Investopedia

Blog Helping kids appreciate money. Now let's take a brief video tour of the New York Stock Exchange trading floor. NASDAQ , Stocks , NYSE , Stock Market.

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