- What are four steps we can take to introduce investing concepts to children?
- What are some other activities parents can do with their young children in order to teach them the value of money and investing concepts?
- What are some tips experts at Kiplinger's suggest for reinforcing saving concepts with young children?
What are four steps we can take to introduce investing concepts to children?
Experts at Kiplinger's, who have been writing about this subject for decades, suggest you explain investing concepts in a simple way; assist your child in buying stock in some of his favorite brands or companies (by either purchasing a stock or tracking its performance); mentor your child by teaching him, and taking an interest in what he is doing; and include both sons and daughters in all early investing ideas (since surveys show that women feel less confident than men when it comes to investing).
What are some other activities parents can do with their young children in order to teach them the value of money and investing concepts?
Family financial expert Neale Godfrey, co-author of The New York Times best seller Money Doesn't Grow on Trees: A Parent's Guide to Raising Financially Responsible Children (2013), suggests parents play money games with kids so they begin to understand the value of different coins. She suggests setting up three or four jars and a pile of assorted coins with which parents can teach young children about the value of money, reinforcing such skills as math, counting, and sorting. The parent then shows the child how to divide the money into each jar that has a specific purpose, such as charity, quick cash, short-term savings, and long-term savings.
What are some tips experts at Kiplinger's suggest for reinforcing saving concepts with young children?
Experts at Kiplinger's suggest that parents can better reinforce financial concepts in young children by helping the child set short-term goals because children do not have a long time frame or conceptual image developed. So the experts suggest that parents should encourage children to set goals that are short term in nature and easy to achieve. They even suggest that children specifically save money for a trip to their favorite toy store, a goal that is both short term and easily attainable.