Think five is to young to learn about investing? Think Again

No, we’re not breaking down EBITDA or reading 10-Ks at bedtime but we are laying the foundation for lifelong financial literacy. Here’s how I’m introducing the stock market to my daughter in ways that are fun, age-appropriate, and actually sticking.

Step 1: Start with what they know

It all starts with connecting investing to their world. Kids don’t care about ticker symbols but they do love Disney, McDonald’s, and video games.

So we talk about companies she already interacts with:

Every time we stream a Disney movie or grab McDonald’s fries, we’re giving money to a company. Some people own little pieces of those companies and when the company makes money, they do too.

That’s ownership. And that right there is the spark that gets her going.

Step 2: Use Games & Visuals

Once she understood the basic idea of ownership, it was time to make it fun. We built a pretend “stock shelf” using Monopoly money and printed logos of companies she knows and likes.

• She “buys” a stock with pretend money
• We track its performance with arrows (⬆️ or ⬇️) based on news or visits to the store
• She lights up when “her company” is doing well even if it’s just pretend (for now).

Step 3: Keep It About Curiosity, Not Complexity

The real magic happens when I start asking questions that spark her curiosity and connect money to real world thinking here are some examples.

• What do you think makes a company good?
• Would you want to own part of a store that sells toys or vegetables?
• If a company makes toys you love, do you think other kids would want them too?
• Do you think a company makes more money if their toys break or last a long time?
• Do you think a company should take care of the planet, or is it okay if they just make money?

She’s learning how to connect business success with personal interests and that’s economics 101 for kids.

Step 4: Normalize Money Talk

But investing is just one piece of the puzzle, we also talk about money in everyday life and how it can be managed. Some people spend all their money. Some save it for later and some invest it to help it grow.

To make sure it hits home I relate it to money she receives from her grandparents:

• You could buy a toy now and have nothing left after
• Save it and let your money grow slowly over time.
• Or invest it so it starts earning even more money right away.

She got it immediately and the idea of investing made the most sense and that’s enough. The goal isn’t a full lesson in finance, it’s about planting seeds for a confident, empowered money mindset.

Why It Matters

By the time many of us grow up and finally have enough income to start investing, we’re either intimidated by the stock market or convinced it’s not for us.

I want my daughters to grow up thinking investing is normal, exciting, and theirs because it is.

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