Episode•August 8, 2024•16 min

How to Teach Kids About Investing with Maya Corbic | Ep. 330

In this episode of Money Talk with Tiff, special guest Maya Corbic shares her insights on getting kids started with investing at a young age. Maya explains how parents can normalize money conversations with kids as young as 4 or 5 using simple concepts, then get them more involved around age 8 by explaining things like savings accounts, CDs, and stocks. Maya discusses her approach of having kids invest half their gift money, starting with individual stocks in companies they know and then moving up to ETFs and index funds. Her book "From Piggy Banks to Stocks" aims to explain investing basics in a 10-year-old-friendly way. Tune in to hear Maya's tips for raising financially savvy kids and her own journey learning to invest as a first-generation immigrant. About Our Guest From challenging beginnings in shelters and government housing, Maya Corbic is a first-generation immigrant and CPA who draws from her experience of overcoming financial challenges and simplifies money matters to inspire children to pursue financial success. Maya is the author of a kids’ book, "From Piggy Banks to Stocks: The Ultimate Guide for a Young Investor," which simplifies investing concepts and equips children with essential investing skills while keeping them engaged. She founded the Wealthy Kids Investment Club and has a popular Instagram account @teach.kids.money with 128K+ subscribers, through which she inspires parents to raise financially independent kids. Connect with Maya Get the book From Piggy Banks to Stocks: The Ultimate Guide for a Young Investor (Amazon Link) Instagram: @teach.kids.money Twitter: @Educ8Money2Kids Connect with Tiffany Website: https://www.moneytalkwitht.com Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant YouTube: Money Talk With Tiff Pinterest: @moneytalkwitht TikTok: @moneytalkwitht Timestamps [00:00] Explaining investments to kids in simple terms. [04:52] Encouraging investment in stocks and diversified funds. [09:09] Investing in ETF gives broad US exposure. [12:11] Book made friendly for kids and adults. Key Takeaways Introducing kids to investing concepts early Explaining stocks as owning company shares Certificates of deposit for guaranteed returns Investing in companies kids are familiar with ETFs and index funds for diversification "From Piggy Banks to Stocks" book overview Support this Podcast Copyright 2024 Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 -...

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Key Takeaways

1
Start normalizing money conversations with kids as young as 4-5 years old
Use simple concepts like 'money babies' to explain interest and growth
Casually mention investments while checking accounts to make it routine
Avoid making money discussions taboo from an early age
2
Begin active investing education around age 8
Have kids invest half of gift money into savings accounts initially
Progress to CDs for guaranteed returns when savings interest is low
Explain stocks as owning pieces of companies kids already know and use
3
Move from individual stocks to diversified ETFs and index funds
Start with familiar companies like Apple or Microsoft to build engagement
ETFs like VOO provide exposure to 500 largest US companies
Lower fees and automatic rebalancing make ETFs ideal for young investors
4
Investing basics can be taught in age-appropriate language
Peter Lynch noted you only need 4th-grade math to invest successfully
Books written for 10-year-olds can also educate adults effectively
Visual, colorful formats reduce intimidation around financial topics

Intro

In this episode of Money Talk with Tiff, host Tiffany Grant welcomes Maya Corbic to discuss how parents can introduce children to investing concepts early and build financial literacy from a young age.
Maya Corbic is a first-generation immigrant, CPA, and author of 'From Piggy Banks to Stocks.' She overcame financial challenges growing up in shelters and government housing, founded the Wealthy Kids Investment Club, and runs the popular Instagram account @teach.kids.money with over 128K followers.

Instagram Twitter Book on Amazon

– When to Start Talking About Investing

Maya recommends starting casual conversations about investing as early as ages 4-5 to normalize the topic, with more active involvement beginning around age 8.

I don't think that it hurts to talk even to our four or five-year-olds and just casually mention... normalize talking to kids about investing.
– Maya Corbic

– Explaining Investments to Young Kids

For kindergarten-age children, Maya uses the concept of 'money babies' to explain how investments grow and generate returns.

Mommy is looking at my money and making sure that my money is growing and that it's also giving me money babies.
– Maya Corbic

– Teaching 8-9 Year Olds: From Savings to Stocks

Maya shares her approach of splitting gift money between spending and saving, then progressing from savings accounts to CDs and eventually stocks in familiar companies.

Instead of being a consumer... you could be owner of Apple. You could be one of many owners by purchasing their shares of stock.
– Maya Corbic

– Understanding Certificates of Deposit

CDs are explained as safe, low-risk investments with guaranteed returns where money is locked in for a period, making them suitable for risk-averse investors or short-term needs.

– Introducing ETFs and Index Funds

Maya explains ETFs like VOO as a way to invest in 500 major US companies with lower fees than mutual funds, using a 'self-cleansing' index process.

By buying one share of ETF, let's say VOO, you are investing in 500 largest companies in US that are based on the index called S&P 500.
– Maya Corbic

– The Book: From Piggy Banks to Stocks

Maya wrote the book for her younger self as a first-generation immigrant who had to learn investing independently. It's designed to be accessible to 10-year-olds while also educating adults.

The beautiful thing about stock market... is that it's not as complicated as we're led to believe. There's a lot of complex jargon that just makes it sound like it's this complex thing.
– Maya Corbic

Books Mentioned

From Piggy Banks to Stocks: The Ultimate Guide for a Young Investor by Maya Corbic

Resources

Wealthy Kids Investment Club

Topics

Kids and MoneyInvesting EducationFinancial LiteracyParentingETFs and Index FundsStocks for BeginnersCertificates of DepositMoney ConversationsFirst-Generation ImmigrantsChildren's Books