Exploring new territories with your children is not an easy task, requires trial, error, experience and lots of communication. If that is heavy enough for some parents, just imagine the weight of talking with them about a very complex subject like money. Trying to explain it all in regards to something that is more than a piece of paper, a government bond that speaks volumes in our modern society.
Moms and dads have a hard time with this issue very often, in some families it has been a taboo, decades trying to focus the attention of children on education, fitness, and manners, that they tend to forget the real importance of investing, savings and planning. Knowing that your child needs to be a well-informed adult, let’s talk about age, concepts, and methods.
At age 6 to 10, little boys and girls need to have a pretty simple understanding of what money is, what you can do with it and its place in our economy. You don’t need to go that far, just take them out for a walk or a trip to a museum, and explain to them the basic procedures of spending, protecting and philanthropy. Be open about your values and the relevance of personal finances within your family
Those kids grow fast, so when they get up to 10-15 years of age, experts suggest to go a little deeper, talking about equity, stocks, budgeting principles and more. They need to be inspired to do good with every penny. Introduce them to good examples, people in the business that have built a vast wealth with good intentions, contributing to great causes along the way.
The Finish Line
Once they are on the hook, they’ll need to know some of the endless limitations that every person has, because excess, late-payments, fun and games is not everything. College is near, same with a whole new approach to expenses. Adult life is right around the corner, so they’ll need to be ready for the challenge up ahead.
Then, adulthood. They are full-grown now, abstract thinking and personal finances goals are becoming increasingly important in their lives. Savings account, 401Ks, business ventures, risk tolerance, all of this. There’s no better educational resource than books in regards to taxes, protection of wealth and portfolio diversification.
Actually, you can find lots of entertaining and engaging examples from everyday life, making it easy to bond and to learn. Spending time with children is one of the most nurturing moments anyone can have, so let’s make a good use of it, exploring new grounds and fostering the brilliance that resides in every kid’s mind.