Kids should Know About Investing Right from the Very Start
“When children step into teenage they should be persuaded to open savings accounts and should be guided as regards the functioning of the banks. ”
Right investing is a habit that develops gradually. It’s not a magic potion that can be drunk when required. So, it becomes imperative that such a habit is developed in kids with proper guidance and knowledge from their school going days.It does not mean that kids should start investing in stocks and shares, rather they should be slowly but surely taught the tricks of the trade. In fact such knowledge can have a tremendous impact on their mindset, career and life as a whole.
First of all the kids should be acquainted with the importance of saving. All the more, they should be given incentives for saving. A fitting reward to a child who has saved the most can work as a catalyst for others too.
They should be given a fixed monthly allowance and it should be seen that they do not garner money from some outside source. This will amount to cheating and that’s certainly not a good thing to be taught to children.
When the children step into teenage they should be persuaded to open savings accounts and should be guided as regards the functioning of the banks. It’s only once or twice that you should go along with your child for assistance, otherwise he wouldn’t learn self-dependence in money matters.
As they become older, tell them about the pros and cons of credit cards. Teach them the ways of using credit cards judiciously so that they don’t commit those mistakes that elders often commit and fall under debt.
Similarly, encourage them to use credit cards while shopping so that they are acquainted with all the practical difficulties and cautions. Tell them to follow their brain and not their heart while using a credit card and let them know that there is nothing as safe as planned buying.
Similarly, talk with your children with a view to knowing their interest regarding investing money. Advise them about better investing options in the near future when they would have to face the world on their own.
You would agree with me that money problems are one of the most serious problems that confront the grown ups. So, let’s prepare children before they fall into monetary traps.
Author - DeeKay
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