You might think that teaching your child about Money is a waste of time; after all, they don’t have any yet, so why do they need to learn what to do with it?
We live in a society that is always focusing on the next big purchase. Whether it’s the latest iPhone or the best car, a new pair of sneakers, or the right designer label. Without interjecting, your child will quickly develop a mentality of materialism. That will do nothing for their future, because one this type of mindset is established, it’s very hard to break out of. For that reason, laying their financial foundation early on in life is key.
Not sure why? Here are 5 reasons why you should start teaching a kid-friendly approach to Investing right now.
Teaches The Value of Money
Helping your child understand investing early means that they also start to understand the value of money. A child who doesn’t understand the value of money is more likely to become materialistic and have the wrong type of mentality towards savings and other financial subjects when they’re older.
Sets Good Habits For The Future
You can teach your child about savings very early on, simply by using a piggy bank. Investments are a little trickier, but there are many apps and other resources that can help you. This helps your child to develop positive habits for the future.
It’s very easy to assume that if you want something, you can get credit and pay for it later; we all know that’s a quick route towards debt. A child who has learned about money from a young age is less likely to stumble into such problems. You’re basically setting them up for a better future by helping them to understand investing and savings now.
Schools Don’t Teach Money Management
There are many who think that money management should be taught in school but currently it isn’t. That means if you want your child to learn about this subject, you have to be the teacher. Start slowly and don’t overload your child with too much information. Also, remember to make the terms you use child-friendly!
Mistakes At This Age Are Less Troublesome
If you teach your child about investing now, they can start to practice in their younger years; not right now perhaps, but certainly when they’re younger. This means they’re likely to invest less and in schemes that are more likely to bring results.
As a result, they gain confidence and they’re more likely to make the common mistakes earlier, therefore avoiding major losses in later life.
They Will be More Money Confident
Children who grow up learning about money from their parents aren’t as fearful of it when they start earning cash. This means less mistakes, less worries, and more confidence when it comes to saving, investing, and making sound purchases. Raising a money confident child means they’re more likely to have money when they’re ready to make big decisions, and as a result, they’ll have far more opportunities in life too.
Teaching your children about investing isn’t a boring subject, and it has many benefits. All you need to do is approach it in a way which your child understands and finds interesting.
The post Kids and Finance – 5 Reasons Why Every Parent Should Teach Their Kid about Investing appeared first on Kidrovia.