How to get started

The first step is to find a kid-friendly investment club. Browse investment club websites to determine if there are special sections devoted to teaching children or teens about investing. Speak with your neighbors, friends and colleagues to find out if they know of any investment clubs for kids. If you can't find a suitable club you can start your own. Consider getting together with other parents to start an investment club for kids.

Choosing a portfolio

One of the hardest things with any investment club is deciding on the specific investments to make. Children have less money to work with than adults so it is important to stick to stocks that are well within their budget. What is most fun for kids is to choose stocks from companies they are familiar with. Think about clothing, food, computer, game software or other companies they use products from.

Learning about stocks

Before deciding on what stocks to invest, teach your kids to learn more about the companies they are considering. Children can learn more about a company from its website, by reading its annual report or by looking at its daily stock reports and trends.

Finding money to invest in stocks

Children can start by saving their allowance to invest in stocks. Open a savings account at a local bank so they can easily make periodic deposits. Teach children to save part of the money they receive as birthday or Christmas gifts. Older children can be paid extra for completing additional chores around the house. When children are old enough to work outside the home encourage them to take on a part-time job. Parents can help children by setting up a matching program where parents will match the investment amount the child has.

Keeping track of investments

Choose an investment club that offers interactive charts and reports. This will allow you and your child to record and keep track of their investments. Set aside a certain day of the week to spend an hour looking at how the stocks are doing. Make sure to stay on top of the investments and sell stocks when necessary. Follow the market trends using the newspaper or Internet to determine how you think the chosen stocks will perform. Teach children to make a connection between current events and stock trends.