Every responsible parent knows the importance of teaching their children about personal finance. If kids can learn about the importance of budgeting, how money can make even more money, the power of passive income and the power of compounded returns at a young age, they are sure to go through life on a steady financial grounding. The problem is most children are not interested in the finance related topics at a young age. They hardly like maths and english at school and I don’t think the subject of personal finance would be any different.
The Best Way To Teach Your Children About Money – Secret Millionaires Club
The best way to teach your children about money and how it works is to make it fun. The website smckids.com, which is endorsed by Warren Buffet, does just this as it portrays the various lessons of personal finance through a series of short cartoons. I myself went on the website and watched consecutive episodes of these business related cartoons on the go. The cartoons are fun to watch and most importantly, they do portray a message which even young kids can understand.
I find the cartoons on smkids.com to be educational yet fun at the same time. I would advise any parent who wants to teach their kids about money, finance and business to visit this website.
Another great way to teach kids about the power of investing is to allow them to buy shares in their favourite company. Although I don’t have kids of my own, I bought some shares in EA sports for my nephew as it is his favourite company. He just loves FIFA!
Giving your children shares in companies whose products they use is way more beneficial than giving them money. A reader of the website recently sent me the following which is a great blueprint for fellow parents to consider:
My 12 year old son started purchasing shares in Starbucks around August 2016. Every month he purchased £50 worth. He got his first quarterly dividend payout earlier this year. Not much but as I explained it to him, he literally made money while he slept. My son is definitely into the stock market now and is looking at other companies he can invest in. He’s looking into disney and coca-cola. So if my 12 year old son can be financially savvy and think like a boss why can’t everybody else?