Jim Cramer, the host of Mad Money, gave his tips on how to get kids interested in investing. His entire article is entitled Cramer’s tips for teaching children about investing.

Cramer’s Three Tips

• 1. Save, Save, Save
• 2. Make investing fun!
• 3. Go with what you know

My favorite tip is number three for many reasons. It applies to kids and adults as well. This is a great point that we all should follow. Obviously if a child understands the business then they are more likely to enjoy following the companies progress.

In my own investing I have found that understanding what a company does allows me to make much better investment decisions. For example I know very little about biotech and while there is a lot of money to be made in biotech stocks I do not invest in them. On the other hand when it comes to certain types of online and technology companies I have a lot of experience and choose to focus my investment decisions on these types of stocks. When I changed my strategy to only invest in those companies that I understand their core business, I have done much better.