By: Krystle Crossman
Learning how to invest in stocks can be a challenge for anyone. This is why teaching your children about the stock market at an early age can be extremely beneficial to them for their financial future, no matter how young they are. Jackie Marshall decided that she was going to make investing in stocks more accessible to families so that they can share their knowledge with their children. She developed JackieTrust which is a program that teaches parents how to use stocks as gifts for their kids to make it more fun while they are learning.
Marshall says that parents need to look at what their kids are interested and go from there. For example, if they have a child that is interested in football they can use that to build their gifts on. Use this interest to pick out a few tangible gifts for the child such as a jersey or a football. Then buy some stock in something that has to do with football, such as a team stock or stock from the maker of the football that you bought. Marshall states that every time that the child sees that company they are going to think about their stock and they are going to want to know how it is progressing.
The best type of stock for this process per Marshall is Dividend Reinvestment Plan stock. This means that the dividends that come back from the company when the stocks go up automatically buy more stock in the company so that it grows bit by bit over time. This way there is not a lot of buying and selling to worry about but money is still being made.
The most important part of this plan is honing in on the child’s interests and likes. Pick something that is long term and not just a fad. For example it is best not to pick something like a television show that they like or a brand of clothing that they like as these could end up being brands that they grow out of. Interests such as sports and companies like Disney tend to hold up better in the long run. By pinpointing an interest that could be lifelong you will create an investment that will last for life.
There are many different benefits to teaching your children about stocks and investments such as math skills, financial literacy, and personal responsibility. Marshall is proud to run a company that teaches families how to invest appropriately for their child’s future. She is also proud to be able to get the kids involved at an early age.