Children, as well as some adults, are good spenders but poor investors. Some even know neither what investing is nor its importance. This has limited our moneymaking opportunities. Here are four ways you can teach your children how to invest and be financially independent.
1. Teach them patience
Investing requires patience and great discipline. Make sure that your child learns the art of being patient to achieve set goals. This will help them as they become adults and will reduce dependence on others when it comes to investing.
2. Teach them market realities
The investment market is usually volatile especially with modern options like private equities. Your child should understand the fluctuations that affect this market. Make your young investor depend on personal addition to the account for growth as opposed to relying on market appreciations.
3. Open for them a savings account
Being patient and understanding market realities without having a savings account will not help your mushrooming investor. Open for them an account and let them make some monthly saving from what you give them to save and make sure you top up with the same amount.
4. Set targets
Depending on what your child gets in a month from you, set a certain target. If he learns to stick on these targets, he will be a successful investor when he grows up.