Three Tips to Teach Your Children The Power Of Investments

51

Saving and investing is a good habit that should be started from a very early age to ensure your children have money-savvy habits throughout their lives. As a parent, you are the best example to teach them these habits. Three Tips to Teach Your Children The Power Of Investments.

Previously, some great tips for teaching your children to save were featured. Savings are a great and easy way to teach a young child about money. They do not amount to much if you don’t invest them wisely. Read below to learn some investment tips for older children or teenagers.

 

#1 Start By Investing Yourself

A child learns best by example so set a good example by investing yourself whether in fixed deposits, equity, bonds or unit trusts. Take them with you to the bank when you open a fixed deposit account and explain to older children how compounding interest works. Einstein once said that the 8th wonder of the world is compounding interest so do ensure you teach them this secret.

#2 Buy Unit Trusts For Your Child

There are many option available to get your child started on the path to smart investments. Purchase units for them and show them how the annual dividends reinvested into the account help their investments grow. Alternatively, start a unit trust account for them and encourage your children to deposit their extra cash in the fund to build their investment nest egg. Your children have the benefit of time to grow their investments so do maximise that advantage.

#3 Education

Educate yourself and your child on investment tips by reading and increasing your knowledge. Discuss with your teenage children how best you should invest their money for the maximum returns. Take them with you when you talk to a financial adviser to discuss investment possibilities and impacts. It will be a great life lesson for your children.

Investments are never easy as they are personal, depending on the individual’s risk appetite and the market conditions. However, get your children started on the right path by building their knowledge and helping them with their first investment. Teach them the difference between good and bad investments and equip them with the essential money knowledge and skills for today’s competitive world.

Xwzch is a blogger, freelance writer on everything about money matters. She is passionate to write about saving and managing money. Travel enthusiast and animal lover.

5 COMMENTS

  1. Just wish to say your article is as astonishing.
    The clarity in your put up is simply excellent and i could think you are an expert in this subject.

    Fine together with your permission allow me to clutch
    your RSS feed to stay updated with impending post.
    Thanks a million and please keep up the gratifying work.

  2. Good day! This is my 1st comment here so I just wanted to give a quick shout
    out and say I genuinely enjoy reading through your blog posts.
    Can you suggest any other blogs/websites/forums that deal with the same subjects?
    Thank you!

  3. Magnificent goods from you, man. I’ve understand your stuff
    previous to and you are just extremely magnificent. I really like what you have acquired here, really like what you’re saying and the
    way in which you say it. You make it enjoyable and you
    still take care of to keep it smart. I can’t wait to read far more from you.
    This is actually a wonderful website.

LEAVE A REPLY

Please enter your comment!
Please enter your name here