Hi,
Today I
will talk about a little bit about kids and money. I have two young boys and
time to time I have thought about this topic; How I will teach the 8th
wonder of world, different between good and bad loan, and etc. to them. There
are some rules about money which my parents taught to me, but
nothing related to stocks and power of compounding. So, I want to give them a little bit smoother start if they want to have it.
I found an
article about this topic and I decided to wrote my TOP5 list about the topics
which are important to me as a father and which are the rules and hints I want
to teach to my kids:
1. Value
The purpose of lesson 1 is to learn value of money. How much you get
candy if you have one euro or one dollar; one candy or two candies or the whole bag of candy?
2. Patience
With a patience, I mostly mean power of compounding. I have already talk
about this in my blog, but the idea is; use a little bit less today and get
much more back in the future.
What is interest and how it will impact to future salaries and purchasing power. What is the difference between good and bad loan.
4. Weekly Money
At some point, I will start to give weekly money to my kids. This will
be the money they can use to buy something from themselves, candy, toys and
etc. Also, I want to create a rule that at least 10% of this money will be
saved. They will learn the rule; pay yourself first and then for others.
5. Hard Way
Okey, this is a likely scenario for sure with
some topics 😀
They just need to learn some aspects by the hard way.
This is
like an additional topic, but it would be nice they want to read at least one
book about investing and money. And if they would only read one book it would
be: A Random Walk down Wall Street by Burton G. Malkiel. At least this was the "eye-opener" for me.
What will
be your tips for your kids or what those were? Please share your ideas in the
comment section!
Have a
great summer,
Regards,
CVM
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