AARP Financial

How to Talk to Your Grandkids About Investing

Tell Them a Story

Grandparents fill many roles in their grandkids' lives. Storyteller is one of them. Why not tell them stories about your job, how much work it took to earn your income and the ways you've invested your money through the years?

Read Them a Book

Amazon.com shows 6,566 Results for books relating to kids and money; the Barnes and Nobles site shows 583, many of which are available in their retail stores. Check your local library for titles in this category. Then, set aside time to read one of these sources of basic knowledge on your next visit.

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 under 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.