Kids' Investment Clubs

Future Homemakers of America.  Future Business Leaders of America.  Future Farmers of America.  You've probably heard of these groups, and maybe even participated in them in high school (for me, it was the FHA and FBLA).  How about Future Moneymakers?  I'm pretty sure they didn't have this when I was in school, but your local middle and high school could have its own variation of a kids' investment club. 

With some proper guidelines and guidance, such a club can go a long way in teaching today's kids valuable lessons for tomorrow and beyond.  Here are some ideas that could help a kids and/or school investment club have both successful and interesting returns.

It Takes Money to Make Money

Where will the money come from?  This is a major question when considering an investment club as money is a pretty essential part in investing.  Money also can be a touchy subject, especially with a diverse group of students coming together to learn about and handle it. 

For some families, giving fifty dollars or more for a club's investments might not be a big dent in a budget, whereas for others it could be a pretty significant hit to the wallet.  That also brings up the notion of equality in that there should be some uniform means of contributing money to lessen the possibility of an "I brought more to the table than you, so I am better than you" notion.  A potential solution?  Have each member contribute a set monthly due or fee.  This lets everyone in the club contribute an equal amount to invest.  Plus, it is the members' (read: kids') money, so there is the added bonus of students using their own money to invest, therefore seeing what their money can do.

Keepin' It Real

In order for kids to want to put effort into investing, they need some age-appropriate incentive.  In other words, allowing for investment into companies that are relevant and familiar to today's generation may help gain and retain interest. 

Stocks that appeal to adults won't necessarily have the same allure for teens.  Giving the club and its members leeway to invest in recognizable restaurants, clothing companies and even technological-based stocks will bring the whole experience down to a level that is understandable and, dare I say it, cool. 

Adult Guidance

Clubs for students and children should have some form of adult supervision, and an investment club is no exception.  Adults who have some financial savvy as well as enthusiasm about parting with some of that knowledge have great supervisory potential.  Whether it's a teacher or parent or a combination of the two, providing support and supervision to the investment club is a crucial part of potential success.

Final Thoughts

You don't need me to tell you that the internet is a great resource; there are a ton of tips, tricks, ideas and the like about students and investing.  Utilize it.  Also, check out this article about a successful school investment club.  The article itself is a bit on the old side, but the examples and principles might help get your club up and running in the right direction.

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