Why you should teach your kids about investing?
With the stock market experiencing record volatility since the worldwide outbreak of COVID-19, Gallup's 2020 survey finds that 45% of Americans don't own a stock, missing out on opportunities to grow their money. Many working Americans don't invest for a number of reasons. For some, it's the fear of taking losses and for others, it's a feeling they don't know how or don't have the money.
After many years of being in debt or paying student loans, very few learn the hard way to get out of financial mess. They read hundreds of articles on finance and learn to invest and grow their money. Had they been taught financial literacy in school, they would have learnt growing up and would have been in a much better position.
Schools won't teach your kids about investing. Financial education is up to us as parents, even though we may feel unqualified.
From the moment of birth, a child starts developing behavioral habits. Kids learn a lot from parents - habits, politeness, cooking, etc. Think of all the information kids gather related to money: parental modeling, spending habits, advertisements, peer and societal pressures to spend. Building financial literacy for kids involves taking proactive steps to mold positive behaviors around money handling that can counteract marketing and social influences.
Investing is how your kids can take charge of their financial security. It allows them to grow their wealth but also generate an additional income stream if needed ahead of retirement. Investments can provide financial stability in the future.
There are 4 things that you need to teach your kids if you want to equip them to win with money