The investor's mindset is one that understands that you put money, time and resources into a vehicle with the expectation that it will increase in value. These vehicles are assets. Children should understand that they are an asset and there are assets all around them in their little world! The very first investment is always into yourself. Little children should understand that by eating good food, getting their sleep everyday, reading and learning lots of good information they are actually investing in themselves to become more valuable to themselves and the world around them.
My new book, "Teach Me How to Invest Mommy," aims to equip children with the vocabulary development, concept awareness and life application skills to be able to understand these ideas in a digestible way. As your little ones begin to mature and join the world of social media, it will be a little tricky to tackle the ads constantly bombarding them, encouraging consumption and ownership of financial liabilities, rather than financial assets.
I have confidence in our village that with practice, thinking and acting like an investor can become as natural as brushing teeth, watching Tik Tok and tying shoelaces.
Here are five tips to help nurture and develop that investing mindset in your children:
Instill a Habit of Investing
Showing Them The Power of Compound Interest
Shift their Thinking from Spender to Owner
Play “The Rule of 72” Game
Look up Ticker Symbols of Favorite Companies and Introduce Volatility and the Concept Buy Low Sell High
I'll share more about this at my upcoming book launch! Stay tuned!