Teaching children to invest should be part of parenting because schools won't do it.
Here are 10 things about money to teach kids (to put them 10 years ahead of 90% of people):
Here are 10 things about money to teach kids (to put them 10 years ahead of 90% of people):
1) Credit Card "Hack":
If you have a credit card & a child, add your child to the card as an authorized user, and pay your bills on time.
When your kid turns 18 they should have an 800+ credit score.
With great credit, they can get a rental property at 18.
If you have a credit card & a child, add your child to the card as an authorized user, and pay your bills on time.
When your kid turns 18 they should have an 800+ credit score.
With great credit, they can get a rental property at 18.
2) Help kids set financial goals & create a savings plan, such as saving for a big purchase.
Then work with them to help create a savings plan to help achieve their purchase.
This is a great way for kids to learn about the importance of saving and planning for the future.
Then work with them to help create a savings plan to help achieve their purchase.
This is a great way for kids to learn about the importance of saving and planning for the future.
3) Set up a mock stock portfolio, so kids can "invest" in real companies and track the performance of their investments.
This is an engaging way for kids to learn about investing and a great way for parents to help kids understand the concepts of buying low and selling high.
This is an engaging way for kids to learn about investing and a great way for parents to help kids understand the concepts of buying low and selling high.
4) Read age-appropriate books about investing to kids.
There are many children's books that help kids understand the principles of investing and how the stock market works.
Reading books together is a great way to spark conversations about investing and help kids learn.
There are many children's books that help kids understand the principles of investing and how the stock market works.
Reading books together is a great way to spark conversations about investing and help kids learn.
4 Board Games to Teach Kids about Money:
β’ Payday
β’ Monopoly
β’ Cashflow 101
β’ The Game of Life
Warren Buffet has a childrenβs cartoon where he teaches about:
β’ Wealth
β’ Money
β’ Investing
β’ Business
β’ Personal Finance
There are 26 episodes. The show ran from 2010-2018!
β’ Payday
β’ Monopoly
β’ Cashflow 101
β’ The Game of Life
Warren Buffet has a childrenβs cartoon where he teaches about:
β’ Wealth
β’ Money
β’ Investing
β’ Business
β’ Personal Finance
There are 26 episodes. The show ran from 2010-2018!
5) Talk to kids about your own investments and explain why you made certain decisions.
This will help kids understand the importance that investing plays in building wealth over time.
This will help kids understand the importance that investing plays in building wealth over time.
6) Encourage kids to start a savings account and help them understand the importance of saving for the future.
This can be a good way for kids to learn about the principles of building wealth and how to make informed financial decisions.
This can be a good way for kids to learn about the principles of building wealth and how to make informed financial decisions.
7) Encourage kids to start a small business, which is a great way to learn about financial management.
This can help kids understand the importance of budgeting and saving profits.
This can help kids understand the importance of budgeting and saving profits.
8) Hire your kids tax-free:
If you own a business & have kids under 18, you can pay them $13,850 tax-free & deduct it from your taxable income
Your child will owe $0 in taxes & you legally avoided tax on $13,850
They can invest $6,500 of that in a tax-free ROTH IRA
If you own a business & have kids under 18, you can pay them $13,850 tax-free & deduct it from your taxable income
Your child will owe $0 in taxes & you legally avoided tax on $13,850
They can invest $6,500 of that in a tax-free ROTH IRA
Children can perform tasks such as administrative work, social media management, or other age-appropriate responsibilities.
When you pay your child for their work, this is considered a business expense and you can deduct it from your taxable income, lowering your tax liability.
When you pay your child for their work, this is considered a business expense and you can deduct it from your taxable income, lowering your tax liability.
Hiring your children for your business (or side hustle) and investing their pay in a tax-free ROTH IRA is a strategy to save you money on taxes and teach your child valuable skills.
They will learn about budgeting, saving, and investing, all while earning money for themselves.
They will learn about budgeting, saving, and investing, all while earning money for themselves.
9) Open a brokerage account for kids
This can be a great way for kids to learn about investing in the real world, and it can also be a good way for parents to help kids develop good financial habits and make informed financial decisions.
This can be a great way for kids to learn about investing in the real world, and it can also be a good way for parents to help kids develop good financial habits and make informed financial decisions.
10) Make your child a millionaire by 25:
β’ Invest $150/week in an S&P 500 index fund when they are born & nothing more
β’ By the age of 25 this should grow to over $1 million due to compound interest
*based on an 11% return after the S&P 500's historical average over 96 years
β’ Invest $150/week in an S&P 500 index fund when they are born & nothing more
β’ By the age of 25 this should grow to over $1 million due to compound interest
*based on an 11% return after the S&P 500's historical average over 96 years
11) This is the power of compound interest and maxing out a Roth IRA:
10 Years: $117,369
20 Years: $433,591
30 Years: $1,331,479
40 Years: $3,880,962
50 Years: $11,120,016
(*based on an 11% return, after the S&P 500's 96-year historical average, since 1926)
10 Years: $117,369
20 Years: $433,591
30 Years: $1,331,479
40 Years: $3,880,962
50 Years: $11,120,016
(*based on an 11% return, after the S&P 500's 96-year historical average, since 1926)
Over time, your investment portfolio will grow!
A $100 portfolio grows to $1,000,
A $1,000 portfolio grows to $10,000,
A $10,000 portfolio grows to $100,000,
A $100,000 portfolio grows to $1,000,000
The more you invest, the more compounding interest will work.
A $100 portfolio grows to $1,000,
A $1,000 portfolio grows to $10,000,
A $10,000 portfolio grows to $100,000,
A $100,000 portfolio grows to $1,000,000
The more you invest, the more compounding interest will work.
If you don't know where to start investing, buy an Index Fund that tracks the S&P 500 (such as $VOO)
The S&P 500 is a group of America's largest companies, and has returned around 11% each year, on average, over the last 96 years, since 1926.
The S&P 500 is a group of America's largest companies, and has returned around 11% each year, on average, over the last 96 years, since 1926.
~70% of families lose their wealth by the 2nd generation
~90% of families lose their wealth by the 3rd generation
Investing is a powerful tool for building wealth & financial security, and it's never too early to teach kids about investing & making informed financial decisions
~90% of families lose their wealth by the 3rd generation
Investing is a powerful tool for building wealth & financial security, and it's never too early to teach kids about investing & making informed financial decisions
The best way to become financially free is to become financially literate.
Educate yourself on personal finance & investing, and your wealth will grow in abundance.
The wealthy invest in these 4 assets:
β’ Stocks
β’ Real estate
β’ Businesses
β’ Self education/ Self improvement
Educate yourself on personal finance & investing, and your wealth will grow in abundance.
The wealthy invest in these 4 assets:
β’ Stocks
β’ Real estate
β’ Businesses
β’ Self education/ Self improvement
Teach kids about money because schools won't do it. If you found this thread helpful, please:
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β’ Follow me @FluentInFinance for more
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