Pathway to investing :
Age Group 3-6
What to do

1. Encourage piggy bank savings

2. Introduce concept of saving money. Explain the value of money. Articles/toys­­ can be equated to rupees.

3. Give targets for saving - Rs 500 for a racing car or a doll.

Age Group 6-11
What to do
Open bank account and explain concept of interest. Also explain the concept of capital (deposit in the bank) and income (interest) and relate income with expenditure.
Age Group  11-13/15
What to do

1. Explain and introduce power of compounding, various asset classes, risk-return.

2. Let children be around while taking investment decisions—in stocks, securities, real estate, gold—and explain the basis of the selection to them.

3. Encourage them to choose an investment option for their savings. Ask them to explain the basis of their choice. Give your guidance to correct their decisions.

Age Group 13-15/18
What to do

1. Encourage them to make their own investment decisions-maybe some one-time investments in MFs, PPF, FDs. Correct them only if they are terribly wrong.

2. Teach them to keep accounts and how to monitor their money. 

Age Group 18+
What to do

Open a brokerage account and let him understand how the market works. Encourage him to develop personal relations with financial advisors, and keep an eye out for temptations to speculate or to be involved in fraud.