How the Stock Market Works (Real World Economics)
Real World Economics Series
on Goodreads (5)
What’s inside...
In 'How the Stock Market Works (Real World Economics),' Kathy Furgang offers an introductory guide to the stock market geared toward young readers or newcomers to financial topics. The book explains the basics of stock exchanges, buying and selling stocks, stock prices, and the importance of diversification. Furgang simplifies complex financial terms and instruments, and examines the impact of economic trends and historical events on stock market performance. Additionally, the book explores the regulatory landscape to highlight investor protections. Through real-world examples, the readers are equipped with a fundamental understanding of the stock market’s functions and its role in the global economy.
Series reading
Non-Sequential
Age
12-17
Length
80 pages
Text complexity
Discussion points
What do you think happens when people buy and sell stocks?
Can you explain how the stock market affects our everyday lives?
Why do you think some people invest in stocks while others do not?
How do you feel about taking risks with money based on what you've learned from the book?
What would you do if you had the opportunity to invest in a company you really like?
Tip: Role play these questions
Start by asking simple questions to gauge your child's understanding of basic economic concepts before diving into more complex stock market discussions.
Relate concepts from the book to real-life scenarios that your child is familiar with, such as a lemonade stand or a favorite toy company going public.
Encourage critical thinking by asking your child to consider both the benefits and the risks of investing in the stock market.
Utilize the illustrations and examples in the book to help explain the more challenging ideas or terms.
Discuss the importance of research and informed decisions when it comes to investing, using examples from the book.
Key lessons
Example Lesson: Understanding Financial Literacy
Explanation: This book breaks down complex economic concepts related to the stock market into understandable chunks for children.
Real-World Application: Children can apply this knowledge to understand family financial discussions or grasp basic economic principles observed in everyday life.
Example Lesson: Importance of Investment
Explanation: The narrative explains how investing works and why it's a crucial aspect of economic growth and personal financial health.
Real-World Application: Kids learn the value of saving and investing money, which can inspire them to start little savings or suggest family financial planning activities.
Example Lesson: Risk Management
Explanation: Explained through the lens of stock investments, the book teaches how to assess risks and make informed decisions.
Real-World Application: This can help children in making cautious, well-thought-out decisions in various aspects of their lives, such as in games or in choosing how to spend their allowances.
Example Lesson: The Role of Economics in Daily Life
Explanation: By relating the stock market to everyday economic activities, the book shows how economics influences our daily lives.
Real-World Application: This encourages children to be more observant and analytical about the economic dynamics they see around them, from grocery shopping to family budgeting.