Teach your kids about money: 9 dos and don’ts

9. DO: Encourage investing

Richard Drew/AP
Trader John Panin is accompanied by his children as he works on the floor of the New York Stock Exchange Nov. 26. Traditionally the day after Thanksgiving is kids' day at the NYSE. Financial experts suggest older children be allowed to invest in companies or mutual funds that they've researched.

Investing can be a great way to teach kids about long-term growth and risk. Make the bottom line clear: Only invest what you’re willing to lose. Financial experts encourage older children to invest – especially in companies they’re familiar with – but only after they do their research. A kid-friendly, low-fee, low-minimum investment mutual fund is a good start. Even then, kids need to know that there are no guarantees.

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