Parents have the sometimes daunting responsibility of teaching their children how to manage money. At a young age, this usually involves saving pocket money to buy something they really want. Once kids understand the concept of money and saving, you can take it a step further and broach the subject of investment. It does not have to be overwhelming, it can be fun, according to Marissa Schulze playing games like Monopoly or Monopoly Junior is a great starting point.
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“Your children will have fun while learning that they more money they have invested in property, the more rental income they will receive and the easier it is to become wealthy and win the game,” she said.
You should teach your younger children about using cash as money has become invisible, money is a debit card and we’re not seeing money in notes as much anymore.
You can divide their money into three categories, spend, save and give. This teaches them to be responsible with their money and to be more involved in helping their community. Scott Pape uses the ‘jam jar’ approach to make the process easy to understand.
Discuss where and why you invest in certain portfolios with your teenagers. If they show an interest in following the share market you can discuss possible future investments and keep track of certain shares regularly. This way you ensure they are educated to make the best possible investment choices for their savings.
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Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.