While many families across America are struggling to figure out how to save for retirement and handle their monthly budgets, it becomes more and more important to teach our children important investing lessons for their financial future. 21% of Americans think the best way to save for retirement is winning the lottery (http://www.retirementplanblog.com/defined-benefit-pension-plans/gambling-on-retirement/). That’s no surprise because everyone pretty much scrounged up money to buy a recent Powerball ticket. Here are three different lessons you can teach your children about investing to make money.
- Win A Guinness Book Of World Records- This lesson is actually about teaching your kids the very valuable concept of investing in themselves. We know that setting goals and achieving them have a very high correlation to financial success. What about challenging your child to win a Guinness Record? How would that be for a confidence and resume builder? One of our very good friends Mike and Courtney Hoffman recently had their daughter Jace Hoffman win the Guinness Book Of World Records for the largest collection of lip balms. Even though there was a cost to win this record, it is a great teaching concept about the value of investing in yourself. http://www.guinnessworldrecords.com/world-records/largest-collection-of-lip-balms
- Get One New Stock On Every Birthday- Our children have started off their financial lives by becoming avid consumers. Gift cards galore on their birthdays lead to a ton of shopping in the indoor and outdoor malls. Add into that the ease they see in their parents shopping online and there is very little visibility in saving money. Do NOT worry about stock market returns, but rather worry about getting your children excited to save. By picking one stock from one brand they really like every year from the age of 10 you will set them on a course to have a portfolio of stocks that they can follow by the time they go to college.
- Help Them Sell Their Stuff- The most valuable way to teach your children the difference between appreciating assets and depreciating assets is to help them sell off some of the things they bought at full price a few years ago. Think about items such as electronics, toys, etc. that you know will have lost significant value. While they may have enjoyed these things for the moment, you can really demonstrate the lifelong learning lessons about why not to put money in items that depreciate heavily in value.
There are so many important lessons we can teach our children. I hope these three smart money moves lessons can make a financial superstar out of your child in the future!
Request a FREE No-Obligation Consultation: www.oxygenfinancial.net
Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.