Investing can be confusing for people of all ages. That’s why it’s important to introduce the topic to your kids early – and the teenage years are the perfect time!

Here are a few tips for all parents who want to introduce the world of investments to their teens:

• Try to Simplify the Terminology. Do some research and think about how your teen would best understand common terms like bonds, stocks or mutual funds. Get inspired by looking for online investment resources made just for teens or beginners!
  
  
• Start with Familiar Companies. Make investments relevant to your teen by asking them to create a mock portfolio using companies they know and use.
  
  
• Emphasize Diversification. While you don’t want to make investing seem scary, it’s important that you emphasize the risks to beginners! Teach them about how a diverse investment portfolio can protect them from potential profit loss.
  
  
• Teach Patience. Investments are a great exercise in patience! Make sure your teen understands compounding interest and how investing a little for a long time can add up. Find an investment calculator online so they can see the numbers themselves!
  
  
• Make it fun! There are tons of ways to make learning about investing fun and interesting for your teen! For example, you could share some interesting facts about the stock market at dinner or make a game out of investment vocabulary words.