See if your child can “make” some money by playing a stock market game.
First make sure your child knows that stocks are like small pieces of a company. If enough people are buying pieces of that company, the value of its stock will go up. But if people are selling off pieces of that company, the value of its stock will go down. Then show her where the stock prices are listed in the newspaper.
Next, come up with an imaginary amount of money to invest. Have your child pick several stocks. She’ll have to decide how much of her imaginary money she wants to spend on each company.
Ask your child to track the stocks in the newspaper for one week. She should chart the prices each day and figure out how much money she has made or lost. Say she “bought” 100 shares of a $10 stock on the first day. She would have $1,000 worth of the stock. But if the stock went up to $11 on the second day, she would now have $1,100 of the stock. She made $100.
Have her look at her stocks this way for the entire week. At the end of the week, have her give the family a report on how she did. Don’t forget to ask whether there is anything she would do differently the next time based on what she learned.
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