1. Lead by Example
Children learn best by watching their parents. Talk openly about money and demonstrate smart financial decisions. This creates a foundation for them to emulate as they grow.
Rise High Investor Weekly Video #18 Teaching kids about investing
2. Teach the Power of Saving
Encourage your kids to save a portion of their pocket money or income from part-time jobs. Explain that success isn’t about how much you earn, but what you do with your money. Saving builds the habit of “paying yourself first.”
3. Needs vs. Wants
Help your kids differentiate between needs (essentials) and wants (nice-to-haves). When they ask for something at the store, use it as an opportunity to discuss priorities and how money is allocated for different purposes.
4. Cost vs. Value
Teach kids to focus on value over cost. Whether you’re choosing groceries or comparing toys, involve them in discussions about which option provides the best value for money. Encourage delayed gratification by waiting for sales or deals.
5. Money Is Not Unlimited
Explain that the ATM isn’t a magic money machine. Every transaction—whether cash or card—represents money earned through work. This helps them understand the concept of limited resources and the importance of spending wisely.
6. Introduce Investing Concepts
Once your kids grasp the basics of saving, involve them in investing. Start with small, manageable steps:
- Play Monopoly: Use the game to teach concepts like earning rent, buying assets, and building wealth.
- Invest Savings: Help them invest in blue-chip shares to learn about dividends and the growth of investments. Involve them in the decision-making process so they feel ownership over their choices.
7. Involve Them in Your Investment Journey
Bring your children along to property-related activities—like meeting with a mortgage broker or visiting an investment property. Exposure to these experiences will spark curiosity and prepare them for future decisions.