Teaching Your Kids To Invest

Category: Kids & Money

Over the past several years, I have been interested in asking great fund managers how they teach their kids to invest.

It’s 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 in school (not to mention managing credit cards, debt and savings!)

The answers from these experts have been varied.

Some have bought their children shares in their early teens. Others have started an earnings system from housework, where their children are encouraged to save a percentage to invest. Some have bought them a managed fund at birth.

The one thing, however, that they have all had in common is the fact that they got their children started early.

Most agreed that primary school years were good for teaching the value of money, and savings. In a world of instant gratification, getting kids to understand early that they cannot, and should not have everything they want is a challenge in itself. The ability of not comparing what they have to what others kids have is also right up there.

High school seems to be the time most professional investors start exposing their children to investment lessons. One lesson that I loved was from Kerr Neilson from Platinum. He believed that asking your children to be interested in a company, and to understand that company, was incredibly important to spark their passion in investing.

Whether it be tech stocks, medical or media, he believes that if young people have a passion or interest in a sector or an individual organisation, they should own some shares in it (it does not have to be worth much at all), and track the share price versus what’s happening at the organisation. This, he believes, will help to ingrain a life-long interest in investing.

And we all know that the magic of compounding means that 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.

Companies like netwealth are doing their part by sponsoring youth-created organisations like Banqer, which teaches kids how to invest and grow wealth in the classroom, which is great to see the industry getting involved in.

One thing is for certain. No longer is it enough to teach our kids through traditional education and life skills. In a world where property may be out of reach of most, unless they have wealth creation skills, it’s going to be tough.

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Natallia – you’ve said it so well. The message here I think is about consistency. Consistency in checking what’s going in and what’s creeping out. A review of finances to keep on track on interest rates, investment opportunities and Superannuation top ups. Many of us in our businesses self contribute to Super – we easily get behind. It’s part of our financial literacy homework. Get going ladies.
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The goal of the following article is to assist parents have meaningful conversations with their children about money and financial literacy by providing them with practical guidance and useful recommendations. The author discusses goal-setting, budgeting, saving, and investing, and offers advice on how to have these discussions with people of varying ages. The essay is informative and easy to read, making it a valuable tool for parents who want to teach their children about money.

For More Info:-https://busykid.com/kids-debit-card/

From admin on Changing Conversations You Need to Have with Your Kids

Thanks for your comments!

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So enjoyed this, I will share if that’s okay with you, many of my friends will benefit from your journey.
Many Blessings for 2023
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Hi all! This is a good site.
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And once again the regulator finds a way to stop ordinary people from getting advice by placing high costs on people who do the right thing. If a finfluencer is actually trying to scam someone, it would not be hard to operate outside Australian jurisdiction.

From admin on How Finfluencers are teaching millennials and Gen Z about money

They definitely have a place. People need advice and many are working on it to be more accessible. Watch this space!

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So true

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Vanessa Stoykov

Vanessa has been passionate about writing and storytelling since her days of hiding under the doona with her torch to read after bedtime.
Kathy Skantzos

Kathy is a yoga-loving world traveller who also happens to moonlight as a business journalist and writer. She was the finance editor of news.com.au and the Managing Editor of CEO Magazine (Asia) before joining Vanessa and the evo squad.
Shayne Sommer

Shayne is second dan black belt in karate, and a budding romance writer with a difference. Why? Because she writes romance stories that always have a money lesson.
Antoinette Colbran

Specialising in stories for 50+ women, Antoinette draws from her own experiences to help other women avoid the pitfalls and see the benefits of understanding their money situation.
Michael Crooks

Michael Crooks is a more than 20 year writer and documentary maker who has worked with Time Inc and the BBC, who wants to expose the truth from real victims of financial crime to help others avoid their mistakes.
Kim Payne

Kim Payne has spent the past three decades as a speaker, trainer, business coach, and consultant in financial services. She has worked with and transformed hundreds of brilliant, educated, high achievers who are chronically under-living.
Rebecca Pritchard

Rebecca Pritchard is on a mission to help men and women achieve equality when growing a family.
Antony Perring

Ant is a writer, designer and business builder with a love of food, design and good living. He writes on food and money in an easy to do way.
Julie Hyde

Julie Hyde is a leader of leaders. A disruptor and a powerful people enabler who empowers leaders to make big things happen.
Joshua Pennell

As a Dad to four kids and a business owner, Josh is passionate about family and finances and is known as The Family Finance Guy.
Sid Lal

Sid is a serial entrepreneur who set up his first business when he was still in University. Since 2009 he has been heading Bruce Clay, first in India & more recently in Australia.
Lou Johnson

Lou Johnson believes in the power of sharing stories to build empathy, understanding and connection. Growing up surrounded by books and storytelling, alongside her drive to make a difference led her to a highly successful career in book publishing.
David Rae

Dave is a CERTIFIED FINANCIAL PLANNER® professional and has been a financial adviser since 2003. He works with a range of clients and has a strong focus on ethical and sustainable investing.
Natallia Smith

Natallia specializes in assisting pre-retiree single women—whether they are never married, widowed, separated, or divorced—understanding deeply the importance of financial stability during life's pivotal moments such as separation, divorce, retirement, and the loss of a loved one.
Mark Hoy

With over 15 years of experience in financial services, Mark established Wollemi Wealth Management in 2013. His business is built almost entirely on referrals and word of mouth — a testament to the trust, integrity, and long-term relationships he forms with his clients.
Derek Gascoigne

Derek Gascoigne is the State Manager for UniSuper Advice in Victoria and Tasmania. Derek has been with UniSuper for over 15 years, and his career in superannuation and financial services spans 27 years and counting.
Annika Bradley

Annika Bradley is Head of Advice Strategy, Research & Technical at UniSuper. She brings over 20 years of experience across investments and wealth management in both the public and private sectors.
Wayne Leggett

Wayne has been a recipient of numerous industry awards and was one of the first to qualify as a Certified Financial Planner (CFP). He has been heavily involved in industry affairs at the highest level, including serving as national president of the Association of Financial Advisers (now FAAA).
Conrad Francis

Conrad Francis is the Founding Director of Inspired Money, a Perth-based financial coaching and financial planning, mortgage broking and money coaching firm he established in 2011.
Andrew Beks

Andrew Beks is a Chartered Accountant and the founder of Simplified Business and Accounting.