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A Good Investment
Teaching Kids How to Invest in the Stock Market By Doris Keeler
Robert says with the economy like it is, owning stocks is a good investment, as long as stocks are chosen wisely. "The big drops on Wall Street don't really concern me if it's one day," says Robert. "But if there's a pattern, then it will. Usually when our stock market goes down, it likely comes back and at a higher amount than it dropped."
However, not all parents can afford to purchase mutual funds or start a stock portfolio for their children. Neale S. Godfrey, a leading authority on children and money, says the instruction can take place in the home. 
Godfrey has published 13 books on the subject, including the Ultimate Kids' Money Book and A Penny Saved: Teaching Your Children the Values and Life Skills They Will Need to Live in the Real World. She also founded the Children's Financial Network to educate parents and kids about money. Godfrey says the earlier you start teaching your child, the easier it's going to be. Her suggestion is to start with savings and four jars.
"The way it works is pay them their age per week and divide it," explains Godfrey. "The first jar is for charity. Ten percent of the allowance goes into the jar right away. The remaining money is then divided into thirds: one-third for quick cash or instant gratification; one-third for medium-term savings; and one-third for long-term savings."
