Looking back on our younger years, most would agree that it was a time for fun and embracing the carefree, dog days, thinking responsibility was still far off the horizon. But plunging into adulthood can be shocking as financial obligations demand your attention left and right, resulting in the all-too-familiar longing of turning back the clock.
Stocks, investments, and other monetary terms seem dull and loaded subjects for kids to learn, but you don’t need to raise a math whiz or a minified business tycoon. Learning how to invest at a young age can set up your kids for financial success in the long run, plus dealing with numbers can be exciting when done right.
How to Make Investing Fun for Kids
Tip #1: Start with Savings Before Moving Up to Investing
It’s always important to start from the beginning, and when it comes to financial planning, savings come before investing. You can slowly introduce the concept by rewarding them with money every time they finish a chore, but instead of allowing them to spend it all in one go, give them something bigger to look forward to.
It could be a toy, a new game, clothes, or even save for their dream pet! Let them get excited about the concept of saving for something they’ve always wanted since it instills positive financial habits. Moving forward, you can introduce something better: Certificate of Deposit (CD).
The concept allows your savings to grow through time and takes the classic “give, save, and spend” method to the next level.
Tip #2: Teach the Basics of Investing by “Gamifying” It!
Talking about financial matters, no matter how simple and relatable you approach the topic, can quickly become a lackluster conversation. Now that your kids know it will take time to reap the rewards of saving, what can you do to empower their understanding of investments?
Playing a game from exciting apps like Kiddie Kredit offers fun, online simulations of investing in the stock market. It takes the essence of Monopoly to greater heights, dialing up the thrill while improving your kid’s understanding of investing fundamentals.
Tip #3: Let Your Child Invest in Companies They Know and Love Using Fractional Shares
Encouraging your kid to invest is like the cherry on top. It solidifies their basic knowledge of the stock market and boosts their confidence. But you can drive up their excitement by allowing them to invest in companies they already know and love—be it McDonald’s, Disney, Netflix, and more.
Investing with fractional shares is an excellent opportunity for kids since it allows them to set aside small amounts of money, making it possible to invest in as little as $1!
The Bottom Line: Investing Made Easier for Your Kids
Achieving financial freedom as an adult is a challenge for many, but helping your kids develop a healthy relationship with money can set them up for success in the future. When they understand the basics of saving and investing, they can hone their financial literacy and maximize their time to grow their money.
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Handling finances can be challenging for anyone, but it doesn’t have to be a confusing experience if you work with the right accountant who can help simplify the numbers for you. We believe that financial literacy should be learned at a young age to develop a sense of responsibility when handling money.
When schools don’t teach financial literacy to children enough, our mobile app Kiddie Kredit can pick up the slack by educating young children on the credit system by making math, budgeting, and financial management a fun, engaging, and compelling experience! Check out our app today and see how we can help you build a financially free future for your children.