Teach Your Kids

When it comes to investing, you might want to emulate Warren Buffett, who is one of the world’s most successful investors. Despite his success, he is most comfortable buying equities he understands and whose products he often consumes rather than less familiar companies.

For example, he generally steers clear of stocks of technology firms during their formative years, when they have little history to analyze. Buffett will, however, buy stocks of companies that make products he consumes and understands, such as ice cream or soda pop. This real-world approach can make investing more exciting when teaching your teen how investments work.

Age-Appropriate

The stock performance of a particular company might not move teens. But knowing a company that owns their favorite pizza and food chains, or that another firm powers their smart phones and other devices, may elicit their interest.

If your children are in grade school, using this approach on their level can also help them learn about money. They may, for instance, like movies about their favorite superheroes or animated characters. Work with their interests to help them learn the relationship between these products and the companies that make them. It can trigger an interest that will last a lifetime.

Professional Help

Few people can emulate Warren Buffet’s consistent record of successful investing, not to mention his buying power. But you can rely on asset managers of mutual funds, who specialize in researching and trading shares of companies that make products and services you know and understand. With mutual funds, your children can own shares of companies that even the biggest names in investing own. Talk to your financial professional to learn more.

* Mutual funds involve risk and are offered by prospectus, which you can get from your registered representative. Carefully consider investment objectives, risks, charges and expenses of the investment company before investing. An investment in mutual funds may result in the loss of principal. Past performance won’t guarantee future results.