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3 Ways To Inspire Your Child To Make Good Financial Decisions Through Life

3 Ways To Inspire Your Child To Make Good Financial Decisions Through Life - kid with money image

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Time spent educating children is time that is never wasted. Unfortunately, despite school teachers and the school faculties best intentions, it’s difficult to fit in every lesson at school that it takes to become a responsible, sensible person in later life . Kids have a lot to deal with, not only growing up and coming to terms with their identity, but also increasing levels of responsibility as the years pass on.

Filling your child’s head with knowledge is fantastic, and will surely help them in later life. But giving them guiding principles to live by through inspiration and demonstration is more valuable than anything you can tell your kids. So how do you kindle this burning fire of curiosity that children seem to so naturally emanate? Here is a list of 6 different methods you can use to not only teach your child or pupils positive life lessons, but to bond with them as well.

  1. Take an interest in them.

Kids are naturally attention hungry, especially from those they rely on. If you water them with this special ingredient of available openness, listen to what they’d like to achieve in life, and stimulate a few ideas based off of what they say, you can really open their mind from an incredibly young age.

For example, let’s say your daughter says she’d like to ride horses and play with ponies all day when she’s older. Perhaps you could suggest she’d like to be a vet, and help all animals who are poorly feel better! Or perhaps she’d like to open a sanctuary for horses and donkeys. Sit back and watch as her eyes widen with excitement. Keep this up and she’ll start believing she can do anything, which, of course is absolutely true.

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  1. Help them envision their future life.

Helping a child envision their future life is something that is immensely beneficial to opening up their horizons. Of course there’s no need to come to concrete answers, and this exercise should be fundamentally fun. However, sometimes it’s great to stimulate their imagination. For example, you could ask what sort of pets they’d like as an adult, what countries they’d like to visit, or you could go to a website like Pink Realty to give them an idea of the house he or she would like to throw family parties in one day.

  1. Show them the benefits of saving money.

Kids are impulsive, and most adults are too. It’s a good idea to show them, through subtle, unintrusive ways, the best way to manage money effectively. You don’t have to sit them down and teach them the finer methods of understanding balance sheets, but perhaps giving them a small allowance to earn (if old enough,) and letting them spend it once a month only will teach them the value of saving in order to acquire higher value items, or replacing items they didn’t think they lost. You can also tell them in a way that will make them proud of you how your savings have helped you pay for unexpected bills etc, and they will slowly (hopefully) start emulating your habits in their teenage and young adult years.

These three combined steps will not only help your child begin good habits in a way that will bring you closer together and give them a slight understanding of how you run your family, but they will desire to emulate you. Kids are impressionable, so make sure to use this to their advantage.

This will hopefully provide the correct attitude that will stop them making big mistakes in adulthood. You can be sure then that you’ve covered at least some of the bases your tough job of parenthood requires you to address.

Early Learning: How to Teach Important Business Concepts to Your Child

It can be difficult trying to teach our children how business works, but it’s a necessary eye-opening experience that your child needs to understand. It will help them make decisions in the future, and they’ll learn to appreciate how the economy works which can be a great boon to their learning ability in the future.

Here are some of the most important concepts to teach your child, and examples of fun activities to help them understand it. These shouldn’t be aimed at children who are too young. Ideally, you’ll want your child to have a basic understand of maths first because there are a lot of numbers involved in business. You also want to have a couple of toys or video games laying around to use as “products” to demonstrate these concepts.

You’ll also need some sticky labels (that can easily be removed) and a pencil, better yet some colored pencils and paper to write things down.

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Supply and Demand

To teach your child this simple concept, bring out a bunch of their favourite toys or video games and grab a couple they don’t use anymore or don’t want. Set them out like a shop, and then give your child some fake money (such as monopoly money) and offer them to your child. Set a price for each one, making sure that your child’s favourite toys are more expensive, then offer to “sell” them back to your child.

To teach them supply and demand, tell your child that their favourite toy is in high demand and that the price has increased from what the label says. Then, tell them that their other toys are cheaper because they aren’t in demand. They’ll start to understand that products that are highly sought after will cost more because they are in demand, but because there isn’t much demand for their other toys, your child can “buy” them back from you for a cheaper price.

Trading

You can teach your child to learn forex trading which will give them an insight into the trading industry and also how foreign currencies interact with home currencies. A simple way to do this is to use online programs and trial accounts. If those programs are too advanced for your child, then a simpler method is to set out a bunch of toys or games that they like to play, much like the supply and demand example. Play a simple game of trading with them. The objective is to tie in supply and demand with the toys that you have set out.

Give your child a couple of toys and set values on them. Next, tell your child which toys are in high demand (use your imagination here!) and give them reasons. For example, perhaps the latest Pokemon game came out and, as a result, Pokemon toys that your child owns have gone “up” in value, so they can be sold back to you for more money because they are now high in demand. Teach them to read how the market is going so they can buy and sell products to gain profits.

Investing? It May Be The Key To Unlocking Your Future

The future’s a scary place isn’t it. Human beings have an inquisitive nature and need to know the facts; they need the knowledge to ground them. Unfortunately, we can’t predict the future, and that’s a terrifying concept for most.

Especially when money is concerned.

Everyone wants to know that their finances will improve in the future. Everyone wants to know that their hard-earned cash is safe. There’s no straight and clear answer here, but there’s a number of things you can do to take a peek and see what the future holds.

Chief among them, is investing your money. An investment is something you put your cash into in the hope that there will be a profitable return. Simply putting cash into a savings account is an investment. Other investments are bonds, shares, and property. Running a set of investments is called a portfolio.

Unfortunately, investment isn’t risk-free. Banks can fail, and markets can fall through. That has happened and may happen again. It’s not a blind gamble, though; there is an entire archive of information available to you about investing. There’s always going to be risk, though. That’s where the portfolio comes in.

Spreading your investments across different subjects is going to not only increase your chances of success, it’s going to stabilise your income so you don’t suffer when one aspect is under performing.

Firstly, you’re going to need some starting capital to invest. Ideally, this should be around $3,500. This is so you can access the basic Vanguard funds to provide you with more options. You will need to scrimp and save to build your starting fund, and this will be hard work, but the benefits will be worth it.

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Whilst you can put your money into funds, you can also put your money into real, tangible assets. You can purchase gold bullion, which will be stored in a vault for you or you can purchase a property. Either way, they are an investment and options for diversification.

If you would like to find about more about investing in gold take a look at Gold IRA Strategy, Tips, & Rules (The Ultimate Guide) by Sarah Smith

A property investment might be a great option for you. Not only will you hold the deed to a location and a real thing, but it can constantly earn money from you. You can rent this out to commercial or residential tenants and the rent they pay back to you goes to paying off the mortgage on the site. Not only that, but the surplus is your profit. It’s a big responsibility, though, as you’ve got to keep your tenants happy, less they move to a better site and leave you empty handed. Property is huge and diverse and could see you investing into ranches and farms one year before moving over to something like a 1031Gateway property the next.

Investing is a huge world and something that never ends. Although you can’t predict where your cash will end up, it can allow you to peek behind the curtain of your financial future and allow you to have slight control over your future. Do your research and let investing give you a secure future.

Investing In Property Can Be So Simple A Child Could Do It!

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You might think that investing in property is quite complicated. After all, you will be dealing with large amounts of capital particularly when you’re buying homes or even apartment buildings. But if you make the right choices this form of investment could be a lot more simple than you ever imagined. Let’s start by thinking about finding the property you want to buy.

Finding The Right Property

When you go on the hunt for a property investment, you are looking for it to tick off a number of boxes. It needs to be selling at the right price which means you should be able to afford it with the money in your bank account. It needs to be in a great area that is thriving and has an infrastructure in active development. It should be in an area where the crime rate is low, and the community spirit is high to encourage buyers to invest. Or tenants to choose it as their new place to live. Most importantly of all, it should have massive potential to increase dramatically in value. How do you find a property like this? The best way is to get in contact with a property broker. They will present you with the best investments on the market right now that match your budget. Thus, you can make sure that you find and take advantage of a fantastic opportunity.

Fixing It Up

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Once you’ve bought the property you then need to think about fixing it up and making it look attractive. Either to tenants who are looking to rent it out or to buyers who are hoping to turn into their own dream investment. You can fix up a property with very little trouble at all. You just need to make sure that you are hiring licensed contractors and designers. This will ensure that any work you complete on the property is above board and legal. It will mean you can avoid getting financial headaches further down the road. It’s always a possibility but one that is easily avoidable if you hire the right team to work on your property. One thing you want to avoid is too much DIY work. While this can seem like a way to save money, if you’re not skilled or qualified it can lead to the same problem.

Managing The Property

If you’re investing in a property to lease it out you do need to think about management. But this can be easy too because you can use a residential property management service. This will ensure that your property is always well maintained and looked after even if you don’t have time. We know what you’re thinking. Is that just another additional cost? Indeed, but it will save you from the financial issues that develop when a property needs emergency work. With the right service, it will never reach this point.

Keeping It Modern

Lastly, you do want to but a small amount of cash to the side each year for upgrades and improvements the property. This will ensure that you have enough to keep the building looking modern and contemporary. Depending on the size of the building, a few thousand should be enough to cover this.

That’s all there is to it. You see, investing in property can really be so simple you could put your child in charge of this investment.

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Teaching Teens About Investment: The Basics

As a parent with teenagers, you are likely to be worried about their financial futures. If economists are to be believed, millennials could be about to become the first ever generation to be less well off than their parents – so there is obvious cause for concern.

It has never been more important, then, to teach your young adult children the vital importance of saving – and investing in their future. I’ve put together a few ideas which should help you explain – and demonstrate – some of the concepts of investment to your teens.

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Develop their interest in world affairs

Knowledge of global events and their impact on the markets is critical for investors, so encourage your teen to keep in touch with the news. OK, so if you are anything like the average family, your teens are likely to turn off when the news comes on. But, you mustn’t mistake this for disinterest in current and world affairs. There is a good chance that your teens have a keen interest in what’s going on in the world they just choose not to listen to a mainstream voice. Encourage it, of course, but start telling them the benefits of fact-checking and investigating sources. It will prove to be hugely beneficial when it comes to the day they start making investments.

Offer them allowance deals

If you are still giving your teen a weekly allowance, see if you can show them the benefits of putting money way and saving it. For example, let’s say you give them $10 each week. You could suggest that if they gave you back half and save it for 6 months, you would match what they have kept back, doubling their money. Not only will it show them the value of putting money away, but it will also teach them a little about interest and making their money work harder.

Get started on real estate

Buying and selling homes isn’t something your kids will be doing for a while yet. But that doesn’t mean it isn’t a subject you should be discussing. Educational games can help the younger ones, and Monopoly is always a great way to introduce the concept of investing money in property to get more back. If you have the money, you could, potentially, look around for cheap homes for sale, buy one, and let them run it as a business – assuming they are old enough, of course. There’s nothing to stop you from investing in property as a family business, either. You could, perhaps, give everyone tasks they are responsible for and pay them out of any profits earned. Finally, ask their advice. Too many households shield finances from their kids, but being open and honest will help them learn and, most importantly, ask questions.

Talk about the stock markets

Teens love modern technology and big brands – and there is a perfect chance there for you to take their interest further. You could even set them up with a little stock to play with, and see how the markets fluctuate for themselves. As long as your teens have a grasp of money and are interested in the subject matter, it should be easy enough to peak their interest in the relevant markets.

Do you have any suggestions on how to teach teens about investment? Let me know your thoughts in the comments!