Diversification
Spreading money across many investments so one loss can't sink the whole thing.
Diversification means not putting all your eggs in one basket. By owning many different companies — often through a single index fund — a portfolio no longer rises or falls on the fate of any one of them. It's the simplest, most reliable way to lower risk without giving up long-term growth.
Explain it to your kid
"Owning many different investments, not just one."
Related words
🐷
Try MemoryBank free →A new money word every week
MemoryBank's Weekly Recap teaches your kid one money word at a time, tied to what their own account actually did that week.
MemoryBank is a display and education tool, not a financial advisor. Nothing here is investment, tax, or legal advice.