How To Start A Student Investment Club
Investment can be fun and interesting way to teach your kids about investments. If you are a teacher, you could set up a student investment club for your students. Likewise, parents can do the same for their children. Kids can learn about finances and decision making, to prepare them well for later life.
Starting a student investment club begins with the desire to invest. An adult should start and run the club and provide structure and guidance along the way. Properly used, however, the student investment club will be a good learning experience for everyone.
1. Start with a simple goal – to give kids limited participation in searching and choosing stocks to invest. Make sure all of the children have their parent’s consent to join and be involved in the club. You should come up with weekly goals on investing.
2. Write down a list of rules and adhere to them. The rules can help you to keep control of the group. As you are dealing with youngsters, make sure you explain the rules clearly to them.
3. Limit investment threshold. Children have limited funds to invest. Hence, the investment limit should be rather low. You must seek parent’s approval of the investment limit. The amount of money the children have to invest will determine your investment stock choices.
4. Make investing interesting. Investing can be quite boring for children. You can make it more interesting by allowing the children to invest in companies they know of. Good examples are toy, games and food companies. Children may lose interest when they find it boring to invest in a company they never heard of.
5. Encourage children to invest their own money. When they use their own money, they would be much more involved and interested in investing.
6. Ask a guest speaker to speak at club meetings to make it more interesting for the children. Guest speakers can be tax, accounting or finance professionals from your local area.
7. If you have a large group of children, split them into more smaller groups. Each group can form an investment corporation where members vote and decide on investment options.
8. Track the performance of the club investments by using charts and graphs. Keep updated with market trends. You should set a certain day of the week which you will use to review investments with the children.
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