The Future

Teaching Children About Investing

What does the American Institute of Certified Public Accountants (AICPA) feel is the most important step that parents should take to help their children to understand investing?

The AICPA recommends that before you try to explain complex concepts such as options and short selling, you should first teach children to understand the concept of making money grow by understanding short- and long-term financial goals, using examples a child can understand. You can achieve this by giving a child a goal, such as saving for a new game. If your child needs to save for something that is more expensive, then you can teach him why investing in other choices, such as equities or mutual funds, may help him achieve this goal.



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