Saving money is great and teaches teens important traits such as self-control, responsibility and independence. However, in this day and age where there is so much opportunity to make good and bad investment decisions online and offline the key to a successful financial future depends on one’s ability to ‘grow their money’.
Forbes magazine found that children are more than capable of understanding investing concepts.
One tip in particular which is quite a simple one is to speak their language! Investing can be tricky in itself so there’s no need to over complicate it, start basic and build their knowledge from there. This can be done by using simple and current topics, for example, explain how and why the same house valued 15 years ago is worth much more now, these basic steps can be a building block for a wealth of knowledge anyone can acquire.
A good way to motivate children is to explain the difference between saving and investing, we all know that the interest you earn in your bank account is not much compared to your potential earnings through investments. However, it is also very important to address the risks and costs associated with any investment and that thorough research and planning is vital before investing.
Although the above information mentioned does sound a bit technical it is necessary, but it’s also important to make investing sound fun! This can be done by through games that are concerned with the stock market, these games can be downloaded on your phone and computer.
Even though these are just a few ideas, there really is no harm in introducing this topic to your children. There’s a world full of knowledge, get kids to embrace it!
Thanks for reading!