How parents can motivate their children to learn investment at an early age?
Investing is a crucial practice that every individual should be habitual to live a better and more stable future. The idea is even more applicable to the constantly complicating environment of the twenty-first century today.
Investing can not only provide you with a reliable financial ground in the future but can contribute to your lives in a multi-dimensional way.
Coming to an essential part now, children are the nation builders of tomorrow and implanting the idea of investment in them is a significant responsibility of parents. However, it is imperative to understand that children live in a world of liberation and are naturally not likely to be aware of such life aspects.
Making children understand the sheer importance of investment can be quite challenging in this scenario. Here is a Quote I say to newcomers.
In the jungle of investment, returns are overrated and expenses (fee or tax) are underrated.Atul Kumar Pandey (AtulHost)
Hence, demonstrated below are some of the feasible yet useful tactics that will help you inspire your children to learn the art of everyday investment.
Understanding your child’s learning style – a rational approach.
The above statement is not merely important when it comes to teaching your child about investment but matters in bulk while teaching them about any concept.
Practically speaking, ‘Investment,’ is a broad concept, the sides of which are even sometimes confusing to adults.
So, beginning to teach without knowing the learning technique of your child can confuse them. Moreover, children learn through dynamic mediums. For instance, visual equipment can end up being more confusing for a traditional learner, whereas a visual learner can get easily disinterested in conversations and discussions.
Starting small – the basics and terminologies of investment.
Staring with the very basics can create a strong fundamental knowledge base. You can simply begin by basic concepts like the definition of stock, compound interest, what is a Demat account, what are mutual funds, how does the real estate industry work, etc.
Getting your kids familiar with these basic terminologies will not only help your kids grasp fast but also reduce hassles on your part? To make them show interest in investment, you need to get the wheels rolling in the first place and this is precisely where the role of the basics of investment comes into the picture.
Partnering up with your kid by using their language.
Children can easily lose interest even if you are teaching them the right content with the utmost effort. Therefore, it is important to understand that the catch lies in ‘how you teach them about investment’. Using overly complicated words and concepts that the subject of finance usually holds can be quite challenging for children and lead the entire effort to nowhere.
Therefore, you can use witty examples and reward them with treats after they cooperate with you or pick what you were trying to teach quickly. It is wise to use simple demonstrations like how to attain more money by using your money and you have already made your child understand the basic concept of investment.
Use computer games – make investment funny.
The present era generation is a lot in computer games and other relevant visual games. The idea of computer games is not merely confined to puzzles actions and adventures but also includes investments, stock market strategies, and more.
Children spend a substantial amount of time gluing their eyes on the screen, so why not use the same in a productive way.
There are ample games on relevant genres and categories that you can use to get your child casually involved with the concept of investment.
Availing the opportunity of the everyday teachable moments.
Other than that, one of the simplest tactics that all parents can use is by taking advantage of the everyday teachable moments.
You can simply talk to them about the products we use every day that are manufactured by a company. It takes money to make the products and to attain the amount, companies sell the stock. Using everyday occasions and gradually raising their interests is one of the smartest ways to accomplish the same.
Discussing stock market-related occurrences and news with your child.
Almost all newspapers have news related to finance these days and that can be good for you to share some valuable insights with your children.
The everyday happenings are not always directly related to investment. But this can be an excellent channel for you to pick the interest of your children on finance-related occurrences. Doing this will not only strengthen the core knowledge of the subject but also equip them with real-world investment matters.
Not putting all your eggs in one basket – a smart practice of investment.
The above statement makes a lot of sense when it comes to smart investment, although the concept can be introduced to your child later. So, to break down the concept, an eatery is selling sandwiches and is boosting its sales rate on the same.
The customers find an issue with the cheese or meat in the market the next day or there is a mere change in the tastes and preferences of customers.
Experiencing a sudden fall in the sale can lead to a failure of the business. So, if it sold other items along with sandwiches, the possibilities would be much prosperous. This is precisely where the saying of not pulling all your eggs in the same basket comes into the frame. If your child is already familiar with money-saving, you can give them an idea of how to do the right investment via everyday practices.
For example, you can ask your child to be selective about where they want to spend the saved money and how will the expenditure provide them with a valuable return. As gathered, the idea is not to gourd children with complex knowledge and ideas but to get them accustomed to the sheer practice of investment, saving, and other important financial factors. Ultimately, this is the learning time.
As already mentioned investment is not merely a financial advantage but will serve you gold in the long run in multifaceted ways. In fact, it will not just help your child lead a much better and responsible future but also free you as parents from long-term financial risks and hassles often imposed by children.