Training Kids to be Financial Superheroes

Updated: Jun 26, 2021

Fact 1: every savvy investor was once a child, mostly clueless to the world of equity, bond and commodity markets.

Fact 2: it’s never too early to get your child started on their investment journey and building good financial habits.

The final Girls Just Wanna Have Fund$ event for 2020 was a family affair, with Will Rainey from BlueTree sharing his advice for creating good financial habits from a young age. From seeds to flowers to bushes, Will had three essential habits to share:

  1. Plant a seed. When you give your kids money, help them to think about saving one “seed” out of every ten for the long-term. If you can build a savings mentality early, kids won’t lose it as they grow up.

  2. Grow flowers. Teach your kids to save for something they really want to buy. Help them to work out the cost, how long and how much they need to save from each round of pocket money.

  3. Turn your seeds into trees. Watch your money grow and talk about how it’s growing. Regularly check in to see if flowers are blossoming or if you’re close to hitting savings goals.

Will also said it’s never too early to start investing and teaching kids about equity markets. He gave the example of taking your kid to McDonald’s for lunch and explaining that owning shares means you’re getting some of your food for free! Or buying an iPad at Apple and getting a saving through dividends or capital growth.

Like every other GJWHF$ expert, Will advised to find low cost investment funds to spread your risk across the entire stock market. But don’t forget, kids these days are mostly ethical investors so look for ESG screened ETFs or mutual fund products and forget the nasty stuff!

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