Guide to teaching your Child about Investment

Financial planning and security are a very important part of our lives. Financial planning is crucial for everyone who wants to lead a full life. Sadly, it is not one of the subject children are taught in school. A basic knowledge of handling your finances and investment is necessary for all children. Money is the basis on which most of us spend our lives, and a working knowledge of how to save and put it to good use is a good lesson to learn early on in life.

You can start teaching your kids about money, how to spend it wisely, how important it is to save it and the benefits of investing it, right from a young age. But finance can be a bit of a bore, especially when you’re a child. So here are some ways in which you can teach your child about finance through practical experiences, that are both fun and educational.

1.      Give them pocket money- Pocket money can be a good way to teach a child about saving. You can start giving you child a small about of money and let them spend it as per their needs. Having their own money can help them understand its value.

2.      Board games can be educational- Board games, at least some board games can be handy in teaching children about money. Business oriented games or games dealing with money like Monopoly, Business, Life etc. can teach kids a lot about investments and returns.

3.      Involve them in your planning- It’s not easy and sometimes not necessary for parents to involve their children while discussing money. But when it comes to investments, endowment insurance and savings plans having your children as a part of the discussion can be a good thing. Involving them in your banking processes or having them go to the bank with you can teach them a lot too.

4.      Accounts can be empowering- Banks today, have a lot of schemes and child investment plans. Children get special accounts and even debit cards for their accounts. Having a bank accounts, a child and having a working understanding of how it operates can be very helpful for children when they grow up.