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What are Socially Responsible Investing (SRI) and ESG for Kids and Beginners

What are Socially Responsible Investing (SRI) and ESG? Easy Peasy Finance for Kids and Beginners

Introduction to Socially Responsible Investing (SRI) and ESG for Kids and Teens

This video explains the concept of Socially Responsible Investing (SRI) and ESG in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about SRI and ESG, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.

What are Socially Responsible Investing SRI and ESG for Kids Teens and Beginners
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Suitable for students from grade levels:

  • Kindergarten
  • Elementary School
  • Middle School
  • High School

The topics covered are:


What is Socially Responsible Investing?

Socially Responsible Investing SRI and ESG for Kids Teens and Beginners
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Socially Responsible Investing (or SRI) is investing in companies that have a positive social impact.

For example, companies that focus on green energy & sustainability, reduce their carbon footprint, use ethical practices, or give back to the community are considered to be socially responsible investments.

Socially responsible investing has soared in popularity in recent years.

Do socially responsible investors care only about making a difference?

No. Socially responsible investors look at the profitability of a potential investment, along with its impact on the world.

Many people think that in order to invest in companies that are good for the planet, they have to sacrifice investment returns. But that is definitely not the case!

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If you do your research and choose a good stock or fund, it can give great returns even if it is Socially Responsible.

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I heard about something called ESG. What is that?

What is ESG Environmental Social Governance for Kids Teens and Beginners
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ESG is a type of sustainable investing where investors evaluate companies based on Environmental, Social, and Governance criteria.

Environmental factors include carbon footprint, pollution levels, waste disposal, etc.

Social factors include employee diversity, consumer protection, animal welfare, etc.

Governance factors include transparency with shareholders, executive pay, board composition, etc.

How can I invest with social responsibility in mind?

Instead of investing in individual socially responsible companies, you can invest in a Mutual Fund or Exchange Traded Fund (ETF) that invests in socially responsible stocks. That way, you will be diversified without having to buy individual stocks.

How to be a Socially Responsible Investor or ESG Investor
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When investing in a socially responsible fund, it is important to do your research and figure out the exact methods the fund uses to invest. You should only invest in funds that have philosophies that align with your own.

Should I become a socially responsible investor?

Having a socially responsible fund in your portfolio can be a good idea. In addition to supporting good causes, it makes your portfolio more diversified.

However, for now, it is best to avoid having your entire portfolio centered solely around socially responsible investing as that could severely limit your options.


Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens


Podcast: What are Socially Responsible Investing (SRI) and ESG

What are Socially Responsible Investing - SRI - and ESG
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