Saving & investment strategies for kids: Guaranteeing child’s future. Preparing children for future prosperity, plans for college & beyond.
Our parents teach us many things from a young age, but one that is rarely taught to children is financial literacy. Although money is one of the most necessary secondary things in the world, to learn to manage money is a matter of learning and skill. If your children start learning about money and finances from a young age, they will eventually create a habit that will grow into a valuable life skill. One of the best and fastest ways to teach your child everything about money is using one of the best kids debit card available.
Explain in detail the origin of money
For children to understand money at all, you have to explain to them how money is obtained. The only and correct way to earn money is through hard work. Money does not grow on magic trees nor does it come from magic machines (ATMs) as many children might imagine.
Having a children’s credit card
An option that has proven to be extremely important when it comes to teaching children financial literacy and acquiring various social skills. There is a reason why this model was designed for children to bring the world of adults and the world of finance closer to them.
Within each offer, you have a corresponding application where children have various options when it comes to financial aspects, from creating a savings plan, earning, spending, investing money in shares, and donating money for charitable purposes.
Benefits for kids of having this option
Children develop a sense of money, but also a sense of social sensitivity, that they want to help those who need help the most. In addition, there are numerous tables of activities and obligations that parents can make easily adaptable for each child. The goal of these tables is to help children have a clear plan and program of household, curricular, and extracurricular obligations and chores.
Research has shown that children who have this credit card become financially independent, debt-free adults. Therefore, it is understandable why an increasing number of parents enable this form of learning for their children because it is fun, clear, and creative.
Encourage them to start working
For many teenagers, the money given by their parents is not enough to cover their expenses, so many decide to find a part-time job. This is more about responsibility than money, you can also offer to pay them extra for doing certain household chores. In this way, many parents encourage their children to work harder and contribute to the household.
Many children choose to walk dogs, look after pets, babysit, and mow the lawn, while some choose to sell their art and handicrafts. Children must choose a job that they find interesting and fun. Teenagers decide to work in a cafe, grocery store, or shopping mall.
529 educational plan
This unique plan is designed to help many prospective students secure money for a college education. Since the cost of a college education is very high, a college savings plan and program are very important. There are two options within this plan, the option of saving money and paying at today’s price, which is a bit risky because prices are constantly rising. Another option within the plan is that you can invest the money in various bonds and stocks that are prescribed by the college or the government. There is also a clear stipulation that you cannot use the money for other purposes than paying school fees, rent, and purchasing school materials. Further knowledge of financial planning can be attained with the acquistion of the Series 66 license.
Encourage them to invest
Although saving is very important, you cannot easily double or triple it, that’s why investments in various shares of companies, brands, and various industries are important. Children within the credit card application have the option of investing in selected companies such as Netflix, Apple, or Google. Every transaction must be approved by a parent. Children can easily create an investment plan. What is important is that over time, children begin to expand their investment to other types of industries, thus gaining greater experience and a richer portfolio. If they wish, you can also arrange for them to have a conversation with a broker in that way he can explain everything in a more detailed way than parents can.
Conclusion
The goal is to offer children all the basic tools to acquire the necessary financial knowledge and enable them to further research and learn on their own. In addition, children must have their own goal and plan to strive for, whether it is buying a car, saving for college, or buying their first property, it is up to them to decide.
