KIDS KREATIVE KORNER
Can Teens Make Money in the Stock Market? Of Course They Can--By Being Cautious and Asking the Right Questions.
By Bonnie Drew
Arthur Berg Bochner, author of THE TOTALLY AWESOME MONEY BOOK FOR KIDS, says teens and preteens can be the best stock pickers around. How? By asking the right questions in the beginning. Bochner advises asking yourself questions like these:
* What movies do kids/teens watch?* What clothes do kids/teens wear?
* What foods do kids/teens eat?
The companies who sell these products are very likely to be good investment picks. To find out how well the company is doing, write the company a letter and request its annual report. Study the report to see if their earnings are growing every year. Find out if they pay dividends to investors. Then start watching the company's stock price in the financial pages.
When Emily Maslanka was 13, she used this method to choose Disney as her favorite stock.
"First of all, I liked Disney because they do kid things," she said. "But I also feel Disney is a very safe investment because they have so many types of businesses: hotels, stores, movies, clothing, food, magazines, and more. If one division goes down, they still have lots of other ways to make money."
Inspired by her grandfather's advice, Emily studied Disney stock for months. Then she saved enough money to buy five shares. Disney was Emily's first step toward developing a solid investment portfolio.
And that's something you can do, too!
Bonnie Drew is the author of FAST CASH FOR KIDS (2nd edition), published by Career Press (1-800-227-3371). She is also the creator of the KIDS BUSINESS software for young entrepreneurs, available from Homeland Publications (713-332-9764).
Drew is also Editor of YoungBiz online magazine, published by Kid's Way, Inc., a company that helps youth prepare for business and the workplace of the 21st century. For more information, write to Kid's Way at 5589 Peachtree Rd, Chamblee, GA 30341 or call toll free 1-888-KidsWay (1-888-543-7929). YoungBiz magazine can be found at http://www.youngbiz.com
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