Invest in What You Know: Teaching Kids Smart Investing Habits

One of the best lessons you can teach young investors is simple: invest in what you know.

If your kids are at the stage where they’re ready to start exploring investing — maybe through an app like Greenlight — it’s the perfect time to make learning hands-on and personal. As our readers know, my favorite tool is Greenlight, but there are plenty of other great apps out there that can help your family start this journey. Choose one you like best and dive in together.

We’ve talked a lot about Greenlight and its features in past newsletters — from budgeting and saving to investing, giving, and even earning money through chores. If you haven’t yet, check out our website and past issues to learn all the ways you can use Greenlight (or similar apps) to raise confident, money-smart kids.

Once your kids have an investing platform, let them make small, meaningful choices by purchasing stock in companies they already know and love. Maybe it’s a gaming company like Nintendo or Xbox. Maybe it’s a favorite restaurant such as LongHorn Steakhouse, Chick-fil-A, or McDonald’s. Or maybe it’s a brand they wear — Under Armour or Crocs.

When kids recognize the names and products behind their investments, the concept of ownership becomes real. They begin to understand that when a business performs well, so does their investment. It’s a tangible, exciting connection between the world they live in and the world of finance.

But don’t stop there. Help your kids dig deeper by researching what makes a company strong and sustainable. Ask questions together:

• Has this company performed well over time?

• Are they financially healthy?

• Do their values align with ours?

That last question matters more than most parents realize. As families of faith and integrity, we want our kids to know that how we earn matters just as much as how much we earn. We don’t want to spend time learning, saving, and investing only to discover we’re supporting companies that don’t align with our beliefs.

When you teach kids to “invest in what they know,” you’re helping them take ownership of their financial future in a way that’s both practical and principled. It’s not just about growing money — it’s about growing values-driven wealth.