Advisors suggest ways for parents to build confidence in teaching kids about investing.

• According to a recent SIFMA Foundation survey, only 22% of parents are "completely confident" in their ability to teach their children the fundamentals of investing.
• Young people can benefit from financial advisors as a resource for starting and expanding conversations about investing.

A survey by the SIFMA Foundation found that while most parents believe it's crucial for their children to learn about investing, only a small percentage feel confident in their ability to teach their kids how to do it.

According to a survey, only 22% of parents are "completely confident" in their ability to teach their children the basics of investing, and they're seeking assistance from their children's schools. Additionally, 74% of parents would consider moving their children to a different school if it offered financial education and investment courses.

SIFMA with Wakefield Research polled 1,000 U.S. parents of students in grades K-12.

Financial education is not required in 24 states for high school graduation, according to NextGen Personal Finance, and experts worry that the lack of financial education may lead younger investors to make decisions based on social media and "meme stock mania."

"With the ease of starting an investment account online, how are we guiding young people through the process?" inquired Melanie Mortimer, president of the SIFMA Foundation. The organization supports "The Stock Market Game," an online simulation that introduces students to the fundamentals of investing.

The program taught students about the companies behind the products they buy, the significance of diversification, and using investments to create generational wealth, according to recent program graduates.

"Lance Robert, a Harbor Teacher Preparation Academy high school junior in Los Angeles, stated that he had learned that buying a product is not enough, but one should also invest in the company. This realization has led his family to consider investing as a way to generate wealth."

Financial advisors' top tips for parents

Financial advisors can serve as a valuable resource for initiating and expanding discussions about investing with young individuals, particularly during periods of economic uncertainty and anxiety.

"During this time of anxiety, it is crucial to educate yourself about finances and also educate your children, as advised by certified financial planner Stacy Francis, president and CEO of Francis Financial in New York. Knowledge and understanding provide peace of mind, and this is an excellent opportunity to do so."

Francis, a member of the CNBC Financial Advisor Council, suggested making these lessons into fun and informal family discussions.

"Ensure that financial discussions are open and free from taboos so that your children can acquire essential financial literacy skills for a successful future."

Investing experience for your child is a wise move, according to advisors.

Catherine Valega, a Boston-based CFP and enrolled agent, founded Green Bee Advisory and is the mother of four.

Parents can open custodial Roth IRAs for their children and encourage their clients with minor children who have earned income to do the same. In these accounts, parents act as guardians and children are the beneficiaries until they reach the age of majority (usually 18, but sometimes 21) in their state.

Children can watch their earnings in these investment accounts grow over time.

Valega stated, "Year after year, they can realize that their money is growing in the markets, even though they may not see it."

Discussing the meaning of investing with parents is also a benefit of hands-on experience for children, she stated.

"Valega stated that his preferred strategy is to encourage people to consider the implications of saving for the future and investing, emphasizing the importance of time in the market for a successful long-term financial plan."

She remarked that "these are the boring strategies compared to what she sees on Tiktok."

Through her school, Parkside Preparatory Academy in Brooklyn, 8th grade student Celicia Haynes learned about stocks and this knowledge facilitated discussions with her family about diversification and risk tolerance.

"Instead of simply keeping their money in a bank, she suggested investing it to earn interest and grow their funds."

To receive the eight-week newsletter series Money 101, which aims to enhance your financial wellness, click here for the Spanish version, Dinero 101.