Your kids/grandkids - how do we help them invest?
Thursday Jan 13th, 2022
For the parents, grandparents, and guardians of Generation Z (those born between 96 - 2012), it's important that you teach your kids/grandkids how to better invest. Each generation has faced different financial challenges and we can all attest that investing plays a crucial part in making our lives (both present and future) more financially secure.
So, how do we educate Gen Z and future generations on the importance of making their hard-earned money work best for them? Here are a few tips:
1. Teach them the importance of Compounding. Compounding is a powerful and significant process in investing - already generated earnings from an asset are reinvested to garner ever more earnings over time. This is called the TMV concept (or time value of money).
2. Secondly, creating a budget can help help them with cash flow management. A budget can be used to ensure they have complete control over their money. This will allow them to put aside money for future investments.
3. Lastly, Gen Z kids are called 'Digitalites' for a reason. They are best known for always being connected and are very much in touch with social media. This is a great way for them to build connections.
As a parent, grandparent, or guardian, it's helpful to become familiar and comfortable with these online platforms. Also, talk to your kids about getting investing advise from multiple sources - a recommendation we have is to reach out to local investors for more insight on how to become successful.
Feel free to share your own investing tips in the comment section below.
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