How do I Teach my Kids About Investing?
How do I Teach my Kids About Investing?
Kids learn so much from the actions of those around them. When you are open with your kids about not only what you’re doing well, but also where you would like to improve, kids learn. We encourage you to have age appropriate conversations often with your kids. Start at a young age with basic concepts of cash, credit, savings and work your way up to budgeting, opportunity costs and interest. When your kids are in middle school, talk about stocks and mutual funds and the impact compound returns has on savings. Teach your kids about compound interest. At the high school level, encourage your child to save and teach them about tradeoffs (you can have this, or that, but not both). If they are working, look at opening a Roth IRA. Have them prepare a budget and write down their goals.
Learning how to be a lifelong investor and saver doesn’t happen in one conversation. It is a mindset that takes time and every conversation you have with your child boosts their chances of success.
