Investing is serious business.  However, the most important lesson you can teach your kids is to have fun while making money.  If you take all of the fun out of investing then your kids are likely to resist getting involved, or staying involved, and that defeats the purpose of teaching them this important lesson.  If you make it fun, then they are likely to think back on this lesson with a smile on their face – and that is what is important in life.

The earlier you start the more impact you can have on your child.  First, there are lots of parents trying to teach their kids about the value of money.  Second, the kids themselves are looking for the investing information and that is certainly good news because teaching kids how to invest is a lesson that will last them a lifetime.

In addition to putting away money for your own retirement, you’d like to have an account earmarked for your child. As your child gets older, you’ll be able to tell him or her that they have an account and after watching that account grow, they can feel secure in their future. Because you’ve introduced them to terms such as “compound returns”, and because they are excited at the fact that their account total has shot up like Jack’s magic beanstalk, they will be unlikely to chop the beanstalk down, for fear of destroying the promise of a bright future.  These funds help your child prepare for college or for travel.

There are a few points to consider as parents and as a family when considering kids investing:

• What kind of account can you set up?
• Who do you want to control the account — you or your child?
• What types of account are you interested in setting up?
• What can you afford to put into that account whether it is a Money market accounts or CDs or Stocks?
• How exactly do you go about setting up an account?
• How can you teach your child about this great investment oak even as it grows?