We all strive for financial freedom. For some people, it is easier to get there, while others are having more trouble. Of course, if you were born in a wealthy family, you have a better starting point. You had a chance to see how your family treats money and how they achieve having financial freedom. That doesn’t mean you’ll necessarily become wealthy yourself, but it is simpler for you to learn. On the other hand, maybe you were raised in an environment in which money has always been a problem. And you probably realized after some time that you are still coping with it.
The same applies to everything: when you learn some things at a young age, you have less issue with it as a grown-up. Kids love to learn and are they are eager for knowledge. They mostly see it as a game, especially if you treat the lesson as one. And once they figure out the money and investing, they’ll know how to act about it until the rest of their lives. If you are learning some things now, as a grown-up, you are aware of how much better it would be if you learned it as a kid. You wouldn’t have as much trouble, and everything would go smoother. That’s why you don’t want to make the same mistakes with your children. Rather try to learn them about money on time, and they’ll know how to appreciate it in the future. Here are various ways to teach your children about stock investing:
1. Learn them how to save first
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Investing can be tricky to understand, even for grown-up people. And that is why we don’t recommend starting talking to your children about it until you see they are ready. Before learning how to invest in stocks, there is so much information they should collect. Start with learning them how to save. And try to make it as interesting as possible, so they are motivated to remember. Using the jars is always a good idea. With this method, they will learn how to postpone pleasure and be patient. The first thing they should realize is that money can work for them, but they have to know how to control themselves. If they make the right steps, the future will be much brighter for them.
2. Make it simple and understandable
If you want to educate the kids, you have to make it simple. Kids usually have trouble with concentration and staying focused for a long time. And if you become uninteresting, they’ll run away. Teaching them about money and investing means you need to need to be creative. These are not easy things to understand, especially at that young age. So you have to act smart. Try to speak their language and think like them. What would occupy your attention if you were in their place? Make it so fun that they don’t see it as a lecture. Instead, make it a game they’ll want to play all the time. Rewards are a good stimulation, so you want to include them in this learning process. Making it easy for them to understand should be your top priority. If you try to get them to learn something they don’t like, this topic can become repulsive to them. And this can harm their future. That is why you want to make it fun for them, so you can all enjoy learning about money.
Source:ft.com
3. Adapt to their learning style
No matter what is the topic, you should always concentrate on what is the easiest way for your child to understand and remember. Some kids love pictures and can learn while drawing, or watching videos. Others are more into reading and repetition. And some kids like to learn through a game. Nobody knows your kid better than you, so it shouldn’t be hard for you to figure out which teaching style to apply. If you adapt to how they learn, it will be simpler for them to understand the point and remember the details. We all learn the easiest when we are motivated to do so. Your kid motivation is the biggest part of learning about money, so you want to enhance it as much as possible.
4. Take a walk through the supermarket or toy store
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Learning your kids about stock investing can sound like a tricky thing, but it doesn’t have to be that way at all. You just need to figure out how to make this topic close to them. And what can be closer to a kid than candies and toys? Take a small tour around the supermarket and talk about products. Try to explain to your kid which companies make those products. Talk about their names and how they look like. Tell them a story and make it colorful and fun. Find the way to paint the picture in their head. And explain to them they can also become a part of the company that produces their favorite candy or a toy. A theory doesn’t have to be boring. You can make it attractive to your kid by using good examples and making an interesting story of it.
5. Make a custodial account
Custodial accounts are made for children but are completely controlled and guided by a parent. After the child turn 18, these accounts are transferred to their name. And they can start using it by themselves from that moment. These accounts can be a great way to get your child to learn about stock investing, money itself, and much more. Not many brokers offer custodial accounts and if they do, they are pretty expensive. At loved.com, you can open a custodial stock account for kids. And make this learning process easy and fun for them.
Conclusion: Teaching kids about money and investing may sound tricky to a parent. But if they learn these things at a young age, it will be so much easier for them to achieve financial freedom later in life. If you want your kids to learn about stock investing, you should try to be creative and make this more like a game to them. Also, try to speak their language and adapt to their learning style. When they grow up, they will appreciate that knowledge so much. They will be able to organize their finances the best way possible and make the future better and brighter.
