How to talk to your Grandkids about Investing

Don't just give money. Give an education.

Tell Them a Story

Investing may not sound like the stuff of bedtime stories. But that's not to say grandchildren won't be interested in learning about money. In fact, many of them are learning about it as part of their elementary school math curriculum. And because grandparents have that special place in their hearts, you might be surprised what a captive audience you have. So spin a yarn about your job. Your life. The ways you've invested over the years to meet the goals you set. Not only will you entertain them, you'll also pass along an appreciation of the value of money - and the importance of financial security.

If storytelling isn't your strength, read a book.

Amazon.com lists 9,963 books relating to kids and money. Barnes and Noble has 611. And your local library can also provide a variety of books on the topic. Seeing the information in print may help make it more real to children - and by sharing this important topic you'll help them live better lives.

If your grandchildren are past story and book-reading age, consider taking them to a workshop, class or lecture. Community colleges and libraries often host events you can attend together. Hearing a professional talk about the importance of planning and financial security may be just the thing to trigger their interest.

Surf the Web with Them

There are a wide array of websites that address the subject of children and finances. Below are some to consider:

www.kidsmoney.org provides an excellent source of savings and investment fundamentals and has links to other sites and sources.
www.kids.gov is a U.S. government resource that guides you through an assortment of topics and tools for helping your grandchildren understand the ABC's of money.
www.ustreas.gov/kids has games and other tools to help your grandkids learn about cash, money and savings bonds. This site gives information divided into age appropriate segments.

You'll be sure to find other sources that serve as useful tools to teach your grandchildren about these important topics. Younger children may prefer games and simple tools; older kids may be ready for books and more mature presentations.

Go Back to School with Them

Local libraries and community colleges often offer courses, lectures and workshop that you can attend and take your older grandchildren with you. When they hear professionals talk about the need for planning, financial security and steps to take, your grandkids may well pay closer attention.

Show Them the Numbers

The internet makes many calculators available that will help children understand the meaning of a dollar and the time it takes to accumulate enough money to reach their goals - both the big and small ones. And, the books you'll read often contain worksheets - or are workbooks - that you can review with them at the kitchen table.

Give Them a Challenge

Open an investment account for your grandchild and offer to match their contributions. You can motivate your grandchildren by matching — dollar for dollar or a lesser amount on the dollar — to what they earn or save from their allowance or part-time jobs. Use your imagination and your personal influence with your grandchildren to create ways of your own to lead them on the road to personal financial responsibility today and more financial security in the future.

The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, or legal, tax or investment advice, or a legal opinion. Individuals should contact their own professional tax or investment advisors or other professionals to help answer questions about specific situations or needs prior to taking any action plan based on this information.

The Financial Advisors are investment adviser representatives of AARP Financial Inc., an investment adviser.

While AARP endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is an investment adviser and a subsidiary of AARP.