Investing with your children and spouse: how to teach them
Investing helps you grow your wealth and reach your financial goals. There are many ways to teach your kids and spouse to invest, but here are some general tips.
Engage them in a financial conversation and introduce them to the general concept of money. Kids can be taught as early as 5
You can talk about your income, expenses, savings, debt, and goals and explain why they are important.
You can also teach your spouse how to budget, track, and manage their money using tools like apps and spreadsheets
Then explains how your business works and how you make money selling your goods and services. You can use examples of companies you know or are interested in, such as Dangote, GTBank, and Google.
It can also explain how some companies share profits with investors by paying dividends.
Explain the power of compound interest. The ability of money to grow exponentially over time as it generates interest and income.
An example can be used to show how a small amount of money invested today can grow to a huge amount in the future depending on the interest rate and term.
You can also use online calculators and charts to show the difference between simple and compound interest.
Let them invest in the companies they love that have little value, like penny stocks. Penny stocks are listed on NGX and can be purchased for less than N5.
This is a great way to give your children or spouse the opportunity to select companies that interest them or intrigue them and show them how their investments are changing over time.
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