Investment is generally considered to be an adult periphery, but nowadays youth too are taking keen interest in stock investment to earn money while continuing with their studies. As a parent, you should also encourage your child if he/she is going ahead with investment option. But you should ensure that your child is learning basic concepts and gaining confidence step by step, because without proper guidance he/she may end up losing his/her hard-earned money.

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For young investors, billionaire investor Warren Buffet has also been very supportive. In one of his interviews with Forbes, Buffet said, “It’s never too early to help kids understand about money. Whether it’s understanding the cost of the new toy they want, or the value of saving money. Kids are exposed to money matters from a very young age, so why not help them understand it and develop healthy habits early on?”

There are, however, some other aspects that you should teach your child to abide by prior to choosing any investment option, according to Finance Expert Jitendra Solanki, who has suggested that parents grooming their child for investments should follow the five tips given below: 

1. Solanki suggests, "First and foremost precaution should be taken that your child should not fall prey to  available short term investment tips. So that, he may be saved from these otherwise lucrative tips that would rather harm his interest."

2- "As a parent you must ask your child to first read and have the basic understand about equity and other aspects of the investment options," says Solanki. 

3- According to Jitendra Solanki believes, "You should encourage your child to go for longterm equity investment and longterm should be like 10 year or 15 years. The child should be taught to be patient enough with his investment if he wants to see his money to grow."

4- Solanki advises, "Young investor should preferably begin with his own earnings like savings from pocket money, or if he has started working somewhere, he should begin with that earning. This way he would be able to understand the value of investment in a better way."

5- "Young investor should always avoid insurance cum investment plan and it must be avoided because both belong to different territory," concludes Solanki.

Another expert, Kartik Jhaveri, Director, Transcend Consulting (India) Private Limited, opined the following:-

1.First of all a young investor should open a bank account
2. Should do savings from pocket money
3. should read the bank statement to understand the difference between capital and interest
4. Invest that saved amount into a Mutual Fund or fixed deposit
5. Finally, he/she should learn how to read the statement of mutual fund and fixed deposit.