Three Tips to Teach Your Children The Power Of Investments


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.


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