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Every parent wants to prepare their children in the best possible way for the future, to provide them with a peaceful and good life. However, life is unpredictable and you can not protect them from everything, but you can teach them the basics, tools, and skills that will guarantee them a stable and functional future. A big role in today’s world is played by money, which is necessary for a normal and healthy life.
The parents must introduce, train and educate their children in finance and all the segments it contains. Teaching them how to save properly and develop a strategic savings plan that they will adhere to, conscientiously spend and dispose of money, and responsibly and wisely invest is a recipe for a perfect future without stress and debt, at least when it comes to money.
You must have had the opportunity to google terms such as “the best ways to invest in the future of children”, and “the best kids credit card“, but you were confused by the number of various choices. Don’t worry, we’re here to explain the best strategies you can take to help your children achieve long-term financial success.
Start early to introduce them to the world of finance
From the age of 4, children already have a concept of money and understand that it is used for purchases, but they have no sense when it comes to its origin. Explain to them that money is earned through hard work and that there are a couple of options where children can earn extra money via smart investing and saving money in the right way. Children are like little sponges and absorb everything that happens around them, so you as parents must be the best example for them, and pay attention to how you treat money when they are around.
Clear goals as motivation
Parents and children must agree on the goals, why the account is opened, and for what reasons, whether it is to save for college, a new car, or buy real estate or land. It is very crucial to clarify and establish clear goals. Here, children must choose their own goals so that they have enough motivation to pursue and fulfill them.
The crucial importance of savings
Learning to save is very important, and very few people have this virtue instilled, which is worthy of praise. From a young age, teach your children not to spend money on some immediate pleasure because it is better to save and buy something more useful.
Establishing a children’s fund
One of the ways of saving and investing in the future is certainly this longer-term type of establishing a children’s fund. Unlike the country where different rules apply, in most countries this type of fund is not taxed, however, guardians or parents can set a certain age when children can access the funds.
This is one of the ways of learning how to save in the long run and manage money properly. This money can be converted into shares, or cash, it all depends on the wishes of both parents and children. Ask about the laws in your state before starting this type of fund.
Children’s credit card as a learning tool
This innovative type of learning financial literacy is one of the best and fastest ways to introduce children to the world of finance and become completely independent. Children have similar opportunities as adults because it is designed to teach all types and segments of the financial world, from saving, spending, earning, investing, and donating money. All these options are located in one place within the mobile app and are at the touch of a finger from children. In addition to the fact that children can draw up various short-term and long-term investment plans themselves, a plan and method of investing in various types of shares within the application, all while completing tasks from the activity tables for household, curricular, and extracurricular activities.
Investing in stocks and the stock market
When it comes to investing in stocks and the stock market, you will have to explain the basic rules to children. Thanks to the numerous options for children’s credit cards within the mobile app, it is possible to invest in a variety of shares of recognizable brands and companies such as Google, Apple, and Netflix. The advantage of this type of investment is that children have a minimum amount that they can invest, and parents must give their approval beforehand. At any moment, children can monitor the status of shares, whether they are rising, falling, or stagnating. It is very important that you first guide children to the branch of the economy that is closest to them, and later, when they have mastered certain aspects of investment, they can gradually move on to other branches of industry and the economy.
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