An asset is something valuable. Asset allocation means finding ways to make money work harder. Show kids that even though asset allocation sounds complicated, it’s really pretty simple. Think about your financial goals, how long it will take to reach them, and select where you should put them, like in stocks, bonds, or a savings account.
Kids know that saving money is important. But, they might not know that where they choose to put it matters just as much. Asset allocation, where you put your money, is ia key step in creating a smart financial strategy that puts money to work. In this article, kids will learn about savings accounts, stocks, and bonds, and see how money inflation affects them.
Sure, it’s a big word, but kids can learn quickly that asset allocation isn’t so tricky. And it’s one powerful skill! It’s an important step in investing money to help it work better in the long term. Asset allocation is how money is divided between stocks, bonds, and short term investments. Now, say it with us: “asset al-low-kay-shun”!