It’s been something I believe has been sorely lacking in traditional education – I for one would have been much better off if the principles of investing were taught to me, not to mention managing credit cards, debt and savings! I have, however, had the privilege of working with some of the best investors in the country over the past 24 years. Here are the three tips they all agree on.
1. Teach them early
Some experts I’ve worked with bought their children shares in their early teens, whilst others started an earnings system from work, and saved a percentage to invest on their behalf. Some bought their kids a managed fund at birth.
The one thing, however, they all had in common is the fact they started talking to their children about investing early.
Most agreed the primary school years were good for teaching children the value of money and savings. In a world of instant gratification, getting kids to understand young that they cannot, and should not have everything they want is a challenge in itself. The ability not to compare with what other kids have is also right up there. Instilling these life lessons into your children early on can only have a positive effect on their relationships with money for life.
Source: Beth Kobliner (YouTube).
2. Make the lessons relevant in high school
High school seems to be the time most professional investors start exposing their children to investing lessons. One lesson I loved was from Kerr Neilson from Platinum. Kerr believed asking your children to be interested in a company, and understanding that company, was incredibly important to start them off being passionate about investing.
Source: The Art of Manliness
3. Buy shares in a company your kids love
Whether it be tech stocks, medical or media, he believes if young people have a passion or interest in a sector and individual organisation, own some shares (it does not have to be worth much at all) and track the share price versus what’s happening at the organisation. It could ingrain a lifelong interest in investing. And we all know the magic of compounding means the earlier you start, the better off you can be.
While schools seem to have come some way in teaching kids about finance and financial planning, there is still a long way to go. One thing is for certain – no longer is it enough to teach our kids traditional education and life skills. In a world where property may be out of reach for most, wealth creation skills will be even more important.
Source: ASIC (YouTube).
About Vanessa Stoykov
Vanessa Stoykov is the Founder of No More Practice Education and CEO of evolution media group. Her website, vanessastoykov.com has tips and tools to help you make better long-term decisions with your finances.
This article originally appeared on vanessastoykov.com and has been published with permission.