Every teen knows a few stocks. Why not use that knowledge to teach them a bit about the the markets? In the following video, Fool contributor Tim Beyers names three simple stocks your teen can buy now to get started investing.
There's good reason to act quickly, Tim says. Depressingly low rates of financial literacy put kids at risk. By contrast, thanks to discount brokers offering cheap commissions and low-cost reinvestment plans, getting started investing is about as easy as it's ever been.
Which stocks should your teen buy? Tim says the S&P's list of Dividend Aristocrats is a great place to start, especially since it contains names that teens will find familiar: PepsiCo (PEP -0.33%) and McDonald's (MCD 0.67%), to name two. A third is a favorite stock of superinvestor Warren Buffett.
Tim advises introducing your teen to some basic metrics, and then visiting the Fool's Broker Center to get help finding the right home for your account. Then, if his choices suit you, buy with the intent of holding and reinvesting dividends for decades.
