Investing leads to development and wealth acquisition, what precedes it is saving.
Even though children are small, they are capable enough to understand money, and they already understand the concept of money from the age of 4.
Many parents refuse to teach their children about finances because they believe that it is better for their children to be happy and carefree.
What parents are wrong about is that it is a childhood that determines what kind of future the children will have.
Therefore, experts advise that the earlier you start teaching children about finances, saving, and investing, the more carefree and stable they will have in the future, at least as far as finances are concerned.
Although money is one of the most necessary secondary things in the world, it has a significant impact on the quality of life.
Many adults today have financial problems that also cause a lot of stress and reduce their quality of life.
To prevent this from happening, start on time with training on finances and primarily with saving and stock investing for kids.
1. Make a financial plan for education
Since education is very expensive, especially if it is a matter of some more prestigious universities, parents will want to allocate a larger amount of money.
Therefore, together with the children, you can make a rough financial plan.
Children can of course focus their savings on education, but you need to start this process as early as possible.
In this way, children will have a goal that they must achieve and be persistent in it.
Some parents are paying their children extra money when they achieve exceptional results in school, win competitions, or compete in a sport.
2. Give them kid's credit card
This type of card has countless possibilities that teach children about finances and the acquisition of various skills by completing tasks within a given time limit.
The process of opening an account is quick, parents provide basic personal information about their children such as name, surname, date of birth, and place of residence.
The account is activated by depositing funds in it and is ready for use.
With this type of card, children can create a savings plan, track expenses, earn money, donate and invest money in shares on the market.
In addition to all these opportunities, children can earn extra money by doing extra household chores or by getting excellent grades in school.
In this way, parents motivate their children to further progress.
Credit cards are an ideal tool for teaching children about finances and investing, which is why most parents choose this method of teaching.
3. Make them small business owners
Children are extremely enterprising and creative, it is up to their parents to encourage and support them in what they like.
Whether it's babysitting, dog walking, pet sitting, selling lemonade, selling self-made items and art, or teaching other children school subjects.
Recognize what works well for them and what they like, and make flyers to post around the neighborhood.
4. Emphasize to them that saving is very important
Explain to the children that saving is very important and that every percentage of their pocket money and extra earnings must be put into savings.
Money that is already in savings cannot be spent until parents give permission.
Explain to them that sometimes it is better to wait with spending on immediate pleasures for the sake of a higher goal.
If they are a little older, you can suggest that they save for a trip to Europe, buy a car, or for college. They must take responsibility for their future.
5. Investing in shares on the market
By having a credit card for children, they will learn the process of investing in stocks.
Some applications include companies such as Apple, Google, and Netflix, where children can invest part of their earnings in their stock.
By investing, children gain knowledge and experience, which will later gradually help them acquire wealth if they make smart choices.
When investing, children can monitor whether their shares grow or not. At any time, they have complete insight into the state of the shares, and the possibility of further investment of their choice.
