I'm often asked by clients if I can help their children prepare to buy a home? I love doing this because I think it is an area that our school system gets a failing grade.
The next question I get is, when should they start learning about finances? I think it should start at a very young age with allowances, savings programs to buy that bike or pair of shoes. It's a way of thinking not a level of intelligence.
If kids learn at an early age that if they want something, they get it, then it shouldn't be a surprise when we see the debt level many Canadians are carrying today in our instant gratification world. If we learn that we have to wait and put in the work first, and then we are rewarded, it changes how we think and behave.
It's never to late to start, and remember, when teaching kids about money the goal isn't to make as much money as possible, instead, it's about having fun and getting your child or grandchild excited about financial opportunities, while they learn very valuable life lessons and start laying a foundation for a financially health future.
Some ideas to get started
1. Pay them a weekly allowance for doing and completing tasks
2. Open up a bank account so the money is harder to access
3. Open up a trading account under your name
4. Let the kids pick the stocks to buy (and it may be just because they like the name, and that's OK)
5. Make sure it's fun and revisit the investment regularly so they stay engaged
If you want to discuss you or your kids personal situation, please let me know?
Daryl French, AMP
Direct: (250) 470-8843