Starting your family’s tradition of investing [under FAMILY TRADITIONS]
Childhood is the perfect time to learn about investing and responsible adults are the ideal teachers. The best way for parents to teach money management is by setting a good example. Parents can reinforce their example by playing financial board games and video games as a family activity. Assistance and supervision reinforce the development of good financial habits such as creating and using a budget. Discussions and field trips are powerful methods for showing children how adults use bank and investment accounts.
Desired skills and knowledge of young investors:
- Resilience and self-control
- Counting money
- Managing money
- Shopping wisely
- Debt management
Copyright © 2019 Douglas R. Knight
I recently shared stories about grandchildren with one of the partners in our investment club. Her 6 years old grandson and 4 years old granddaughter visit her every Saturday morning. Soon after arrival, the 4 year-old runs to the penny jar and puts a few coins in the piggy bank, counting their value during the process. It’s a play activity without feelings of ownership by the child. The 6 year-old performs chores for which he receives a salary of $2. He originally wanted $5, but agreed to $2 after negotiations with grandmother. In the near-future she will take them to the Dollar Store and let both of them spend a $1 anything they want. They will make the purchase and live with their decision. She wants them to learn shopping skills and the value of money. Later on, their father will open a savings account for them at the local bank. It’s the making of a family tradition.