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3 tricks to get children excited about investing and 3 ASX stocks to match

Usually, our investing life goes something like this…

When you’re 18, the last thing you think about is investing and retirement.

Some of us head to university, some buy new cars or go on a Contiki trip…

Next, we’re sick of living with our parents and will save to move out.

Unfortunately, it’ll probably be five years after we’ve bought an overpriced house on an 80% loan, that the idea of investing for the future becomes a possibility.

But then we want kids before we’re 30 and investing is again put off another few years…

Finally, at age 35, we begin thinking about retirement and consider investing some excess cash.

Some will seek the advice of a ‘professional’ whose interests are not aligned with our own interests.

They’ll serve their own interests and push you into the same old overpriced stocks like Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB). This rarely ends well.

Rewind…

Instead of following the herd, let’s go back to our 20-year-old self and imagine we could’ve put away some money for our retirement. Let’s say we invested $10 per day every year in the Australian share market.

Let’s assume we simply put the money in a low-cost fund that tracks the market, so there’s no stock picking required. There’s no conflicted advice getting in the way and no ‘hot tips’ from your cousin’s friend’s stockbroker.

Just $10 per day with profits reinvested.

At the market’s 30-year average return of 11.7%pa your $10 per day becomes $135,879 by age 35.

By age 50, it’d be $831,467.

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Click to enlarge. Source: moneysmart.gov.au.

Here’s how you can get your children excited about investing

Investing in the share market is all about time.

That is, time in the market, not timing the market.

But even if you didn’t start early, you can still help your kids out by getting them excited in something that seems a world away when they’re 18 years old.

Of course, not everyone will be enthusiastic about investing but it’s important to at least give it a try.

Some people will give their children a few hundred dollars to invest in the stocks they choose, in the hope they’ll pay more attention.

Others will show their children their own portfolios to show them how it’s done.

One method I’ve found very successful for getting friends and family excited by share market investing is to show them what is really going on…

Showing them the real companies the behind the three letter stock code is how I start.

Then I ask them what they think of a company’s future.

The trick is finding the companies they’re interested in.

Ask yourself, do they like going to the cinema? If so, then maybe Village Roadshow Ltd (ASX: VRL) – part owner of Village Cinemas, producer of blockbuster films like The Great Gatsby and owner of SeaWorld and Movie World – will get them interested. Shares in Village Roadshow have achieved an average yearly return of 23.7% over the past 10 years!

Maybe they like bowling or going to the gym. Ardent Leisure Group (ASX: AAD) owns AMF and Kingpin Bowling, Dreamworld and Goodlife Health Clubs. It has returned 13.9% per year, on average, in the past decade.

Sealink Travel Group Ltd (ASX: SLK) is a new company to the ASX, having listed slightly more than a year ago. It owns Captain Cook Cruises, Kangaroo Island, SeaLink Ferries and more. Its shares are already up 81%.

Foolish takeaway

They say time is wasted on youth, and we only realise what we have when it’s too late.

It’s all parents’ hope that their children will grow up to be responsible whilst also enjoying life. I think $10 per day is achievable for many (not all) young people and won’t jeopardise their ability to go on a holiday or get a new car.

However it’s up to you, as the parent, to find out what excites them and most importantly: Teach them the right way to do it!

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Motley Fool Contributor Owen Raszkiewicz has no financial interest in any of the mentioned companies. You can follow Owen on Twitter @ASXinvest.

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