I strongly believe it is essential to get your kids saving from an early age. I know that they are not always going to make the right financial decisions, but you have to teach them the best you can. Making saving and investing fun will go along way towards helping them sustain the interest.Today, I would like to discuss ways to motivate your kids to save and invest.
You have to lead by example. If you are horrible with money and your kids witness this, they might fall into the same money traps as you. Children are really smart and believe it or not, they pay attention. So, the best way to motivate your child is practice what you preach. Crazy I know, but at least give it a shot.
Play board games. Growing up, I was not a big fan of board games, but I did like Monopoly. I use to love playing this game and it taught me the value of managing money, embracing greed and gave me a delicious taste for world domination. It makes want to play it now. At the end of the day, if you get to sit down as a family and play a game together how to you really lose. So, take the time and enjoy the experience. I hear that the Allowance Game is also good. You can get all of these items on Amazon. Yes, shameless plug. It is my affiliate link. I have made no money so far. However, you can be the one. Don’t you want to be special?
Give your kids opportunities to make money. Right now we have our son do chores around the house and we pay him some of our loose change. He gets so excited when he is able to put money in his piggy bank. Teaching them the value of work is crucial and is needed in a society that does not always value it. Sitting around all day playing video games is not an option in our household.
Get them invested in the stock market. I think the earlier you teach them about the stock market, the better they will be off to a solid financial foundation. You can give them assignments on different companies and why they should choose one company over another. Let them choose companies that have an impact on their lives such as Mattel or Hasbro. My son is only 4 years old, but I am looking forward to getting him involved in knowing the value of investing. There are virtual stock market games that you can use to help educate your kids. I have them listed at the bottom.
In the end, get your kids saving and learning the value of money. I am not arguing you need to raise the next Gordon Gekko (Wall Street), but money does have an impact on one’s life. Financial literacy is crucial and no one should neglect that area. How do you teach you kids about the value of money?
The Mint.org – Has several resources to help kids learn about saving and investing. Really has a wealth of information, so take the time to look this over.
Marketwatch.com – This is a site that has several things you can do, but they also have a virtual portfolio where kids can buy stocks (simulation of course) and track their investments. I think this site is very helpful and will allow your kids to get needed practice without the worry of losing real money.
How The Market Works.com – Another virtual stock market game that allows kids to pick stocks without the worry of losing money.