TEACHING children about investment is one of the most important lessons parents can give their children.
Neil Thompson, head of product and customer value proposition at African Bank, provides five important tips to parents to help them educate their children about investing.
1 Ignite their entrepreneurial spirit. Every child would love to earn their own money, so help them by brainstorming a couple of ideas that they can put into action from home, on the internet or even in your driveway.
2 Explain the difference between saving and investing. Keep it simple. Investing may sound complicated but it really isn’t. Explain that investing is about making the money they have saved work for them to make even more money.
3 Lead by example. Talk to them about your own investments and show them how you are reaping the rewards of making the right decisions about your money.
4 Help them to set financial goals.
5 Create a place for them to save. This could be a piggy bank if they are very young or their own savings account at a bank if they are a little older.
Also, having their own bank account and card provides a great sense of independence and enables the child to track their journey to achieving their financial goals.
