When you start your first job or exit college, you probably start contributing to a 401(k) or a similar retirement account. But, as the best advice goes, it’s never too early to start investing.
Due – Due
But now you have kids, and you wonder: what if you extended that advice to your children, even though they don’t necessarily earn money yet? Well, you can get your kids started with investing before they earn any real income. This could pay dividends in the future (both philosophically and literally), as it may set your children up to be wise stewards of their money in adulthood.
But how do you do it? It turns out that there are several ways to get your kid started by investing at the earliest opportunity.
Play Games With Money
All kids love to play, and schools use games to impart important information to children’s minds. So why not do the same thing when it comes to investing?
For example, you can start with a basic computer or mobile device games that teach your kids how to add and subtract money, or you can play pretend shopping with real coins. This is great for training their basic arithmetic and getting them used to adding and deducting money.
As your children get older, consider presenting them with games that require them to make investments. Again, computer or smartphone games are excellent for this. But you can also play the many money games that are suitable for kids:
- Money Bags Game
Alternatively, you can also come up with your own games with money. For instance:
- Give your child a dollar. Then, challenge them to a game by telling them you’ll give them two dollars next Monday if they don’t spend their money in a week.
- Continue the game by giving your child more money to grow their patience and see if they naturally grasp the importance of investing.
Teach the Importance of Saving
While playing games can be fun, you should also teach your children the importance of saving and not spending as much money. Of course, you can do so with some of the in-person games mentioned above, but you can also teach them this lesson by tying it into the things they want, like toys or movies.
Say your child wants a new action figure or another toy from the store. However, they don’t have enough money saved up from birthdays or other sources to buy it.
Rather than buying your child the …….