5 ways to introduce investing to your teens | goWave by RHB
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5 ways to introduce investing to your teens

Teaching our kids to save money is a valuable step towards good financial management, but it shouldn’t stop there. While opening a savings account is the safest and most reliable way they could make money, investing their hard-earned cash would give them real earning power. We should start teaching them investment because our kids have the most valuable gift - time. The sooner our children start investing their money, the more profit they’d make. Here are some ways you can introduce them to investment.

1. Investing as a family to teach them the keys to long-term wealth

Work together with your children to select a company that has products and services they understand and use. Encourage and motivate them to research about different companies so that they understand what these companies do. Look at the current results of those companies and discuss how they can change in the future together.

2. Teach them that investing is long-term

Encourage kids to invest on their savings short term, because most successful investors use the “buy and hold” method. We should also share stories and books about successful long-term investors like Warren Buffett and Peter Lynch as a start.

3. Start small and learn from mistakes

Show kids the power of investing with a small amount of money so they can make mistakes and learn from them without costing much. Some investment resources

allow us to invest in fractional shares that reduce risk and barriers to their entry to the investment world.

4. Invest in something you care about

Encourage kids to invest their money in something they care about, as they will be interested to see how their money grows.

5. Make it a habit

When our children earn an income, receive money as a gift, daily allowance , encourage them to invest a little. It would help them build a healthy financial habit of saving and investing. If we teach the younger generation to be financially smart, it can lead to a healthier, less financially stressed life and allows them to reach their full potential.

Do you find these tips resourceful? Hope these methods further encourage you to introduce investment to your children in the future.

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