As a parent and an investor, one of the most rewarding experiences of my life has been teaching my own children about investing.
Over the years, I’ve learned that the earlier you introduce kids to financial education, the more confident and capable they become—not just with money, but in life.
Here’s how I approach teaching kids about investing, and what I’ve learned along the way.
Make Financial Education a Family Value
Financial education isn’t something that should be left to schools or learned by accident.
In my family, we believe it’s a core value—something that’s woven into our daily lives and conversations. I’ve always encouraged my kids to ask questions about money, business, and investing.
The goal isn’t just to make them rich, but to help them become independent thinkers who understand how the world works.
Start with Real-Life Experiences
One of the most powerful ways to teach kids about investing is to involve them in real-world activities.
When my sons, Zach and David, were just five and three, they wanted to start a business.
We settled on a lemonade stand, not just as a way to make money, but as a hands-on lesson in entrepreneurship, marketing, and reinvesting profits.
They learned how to build a brand, promote their business, and manage cash flow—skills that would serve them for life.
As they grew older, they started investing the profits from their lemonade stand into stocks. I insisted that they use their own money, so every gain and loss was a real lesson.
Eventually, they used those profits to buy into real estate deals, including a joint venture to construct apartments in Texas. These experiences taught them the value of ownership, risk, and long-term thinking.
Let Kids Learn from Your Own Journey
Transparency is key. I’ve always shared my own investment decisions—both the wins and the mistakes—with my kids.
I bring them along to real estate deals, let them see how I analyze stocks, and involve them in family financial discussions.
This openness helps demystify investing and shows them that learning is a lifelong process.
Make Learning Fun and Experiential
Kids learn best when they’re engaged and having fun. That’s why I recommend using games, challenges, and family activities to teach investing concepts.
Whether it’s playing Monopoly, tracking stock prices together, or holding a family “investor night” where everyone shares what they’ve learned, the goal is to make financial education interactive and memorable.
Encourage Teaching and Sharing
One of the best ways for kids to solidify their knowledge is to teach others.
In our family, we sometimes hold “family nights” where the kids present what they’ve learned about money or investing.
This not only boosts their confidence but also deepens their understanding of the concepts.
Focus on the Four Pillars of Financial Education
I believe every investor—young or old—should understand these four pillars:
- Fundamental Analysis: Knowing what makes a business valuable.
- Technical Analysis: Understanding market trends and timing.
- Cash Flow: Prioritizing investments that generate income.
- Risk Management: Learning how to protect your money and make smart decisions.
These principles are the foundation for building real wealth and security.
Let Kids Make Mistakes (and Learn from Them)
Finally, don’t be afraid to let your kids make mistakes.
Small failures are some of the best teachers. Whether it’s a bad investment or a business idea that doesn’t work out, the lessons learned from setbacks are invaluable for building resilience and wisdom.
The Bottom Line
Teaching kids about investing isn’t about turning them into financial prodigies overnight.
It’s about giving them the tools, confidence, and mindset to create their own opportunities and make smart choices throughout their lives.
Start early, make it real, and most importantly—enjoy the journey together as a family.