You may think the nature of the topic is too complicated, but by teaching your children how they can invest their money, you are prepping them for adulthood in a way. One of the major pitfalls that many adults fall into is money problems. Teaching your children early on the benefits of investing, how to invest and the importance of personal finance can have a huge impact on their lives and careers. Here are some tips on some of the lessons you should teach your child.
Start At A Young Age Even when your child is 8 or 9 years old, teach him or her how to save. Giving your children an allowance is a great way for them to understand the importance of money and savings. You can give a nominal amount to your children as a reward for saving so much - works like a charm! When children are in their teens, you should encourage them to open a savings account and deposit money into it each week or month. But even before then, it would be nice if you could teach your children a few details about how banking works and how it can help them save money.
Teach Children the Importance of Building Credit Before you know it, your children will be applying for their first credit cards - after all, they grow up much faster than we ever did! Believe us when we say that the importance of discussing credit with your children shouldn't be overlooked. By the time your children reach college, then it is already too late - they would be applying for cards of their own without even consulting you for advice. When shopping with your kids show them by example how to use credit cards effectively, talk to them about how interest works and how credit cards on the whole work. Discourage your children from impulse buying - remember that they would want to get the most out of their purchases for a longer time. These are all lessons that can help children avoid the pitfalls of credit cards.
Preparing Your Children for the Future Part of being a good parent would include aspiring for your children's success and solvency, and helping them ensure this. One of the ways to help your children on the right path is to discuss with them investing for the future. For many kids, retirement is not a concept that they can relate to, but buying a house or nice car might be.
Arm your children with the weaponry that would help them invest for the future (though the "bullets" may not be available to them yet), which would include the devastatingly effective "weapon" of compound interest.
Start At A Young Age Even when your child is 8 or 9 years old, teach him or her how to save. Giving your children an allowance is a great way for them to understand the importance of money and savings. You can give a nominal amount to your children as a reward for saving so much - works like a charm! When children are in their teens, you should encourage them to open a savings account and deposit money into it each week or month. But even before then, it would be nice if you could teach your children a few details about how banking works and how it can help them save money.
Teach Children the Importance of Building Credit Before you know it, your children will be applying for their first credit cards - after all, they grow up much faster than we ever did! Believe us when we say that the importance of discussing credit with your children shouldn't be overlooked. By the time your children reach college, then it is already too late - they would be applying for cards of their own without even consulting you for advice. When shopping with your kids show them by example how to use credit cards effectively, talk to them about how interest works and how credit cards on the whole work. Discourage your children from impulse buying - remember that they would want to get the most out of their purchases for a longer time. These are all lessons that can help children avoid the pitfalls of credit cards.
Preparing Your Children for the Future Part of being a good parent would include aspiring for your children's success and solvency, and helping them ensure this. One of the ways to help your children on the right path is to discuss with them investing for the future. For many kids, retirement is not a concept that they can relate to, but buying a house or nice car might be.
Arm your children with the weaponry that would help them invest for the future (though the "bullets" may not be available to them yet), which would include the devastatingly effective "weapon" of compound interest.
No comments:
Post a Comment