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Investing for Kids


Synopsis


Outgrow your piggy bank-an intro to investing for kids ages 8 to 12

Did you know that the sooner you understand money, the sooner you can make more of it? It's true! Investing for Kids can help make you money savvy, showing you how to earn it, how to start a savings plan, and the best ways to invest and create a future with money in the bank.

With a little help from the astounding Dollar Duo-Mr. Finance and Investing Woman-this engaging guide to investing for kids ages 8 to 12 covers essential information about stocks and bonds, how you can invest in them, and how they can help you build your wealth. Learn about the concepts of "risk" and "reward" as well as learn how to diversify your portfolio and, ultimately, how to make your money grow.

Investing for Kids delivers:

  • Practical advice-Explore modern investing techniques like impact investing and digital trading.
  • A kid-friendly focus-Get real-life examples that you can relate to and find out about famous investors and historical events.
  • Taking stock-Dive into interactive activities and discussions that include kids and parents alike.

Investing for Kids will give curious kids a jump-start on the basics of how money works.

Dylin Redling, Allison Tom

Summary

Chapter 1: The Basics of Investing

* Introduces the concept of investing: putting money into something with the hope of making a profit.
* Explains different types of investments, including stocks, bonds, and mutual funds.
* Real example: A child invests $100 in a savings account that earns 2% interest. After one year, they have $102.

Chapter 2: Risk and Return

* Discusses the relationship between risk and return: higher-risk investments have the potential for higher returns, while lower-risk investments have lower potential returns.
* Explains how to diversify investments to reduce risk.
* Real example: A child invests half of their money in a stock index fund and half in a bond fund. This diversification reduces risk compared to investing only in stocks.

Chapter 3: Goals and Time Horizon

* Emphasizes the importance of setting investment goals and considering the time horizon.
* Explains how different goals (e.g., college tuition, retirement) require different investment strategies.
* Real example: A child saving for college 10 years from now invests more aggressively in stocks, since stocks have the potential for higher long-term returns.

Chapter 4: Types of Investment Accounts

* Introduces different types of investment accounts, such as brokerage accounts, custodial accounts, and 529 plans.
* Explains the tax benefits and restrictions associated with each type of account.
* Real example: A parent opens a 529 plan for their child, which provides tax-free growth and withdrawals for qualified education expenses.

Chapter 5: Investing in the Stock Market

* Explains how the stock market works and how to invest in stocks.
* Discusses different stock types and how to choose stocks.
* Real example: A child buys shares of a company that makes their favorite video games, hoping the company's success will increase the value of the stock.

Chapter 6: Investing in Bonds and Mutual Funds

* Introduces bonds and mutual funds as less risky alternatives to stocks.
* Explains different types of bonds and how they work.
* Describes the advantages of investing in mutual funds, which provide diversification and professional management.
* Real example: A child invests in a bond mutual fund to provide more stability to their overall investment portfolio.

Chapter 7: Real Estate and Other Investments

* Explores alternative investments such as real estate, commodities, and private equity.
* Discusses the benefits and risks associated with each type of investment.
* Real example: A child's parents invest in a rental property to generate passive income and build wealth over time.

Chapter 8: Saving and Budgeting

* Emphasizes the importance of saving money before investing.
* Explains how to create a budget and track expenses.
* Real example: A child earns $20 a week doing chores and saves half of it in an interest-bearing savings account.

Chapter 9: Investing with Technology

* Introduces online platforms and apps that make investing more accessible for kids.
* Explains how to use technology to research investments and manage portfolios.
* Real example: A child uses a mobile app to invest in fractional shares of stocks with as little as $1.

Chapter 10: The Emotional Side of Investing

* Discusses the emotional challenges of investing, such as fear and greed.
* Provides tips for staying disciplined and making rational investment decisions.
* Real example: A child experiences a temporary loss in the value of their stock, but they remember the importance of long-term investing and hold on to their shares.