Here is a subject heavy on my mind, I've got three little ones (4yrs, 2yrs and 7month), and I want to give them a good financial education and how to live in the fastlane.
I'm looking for any ideas I really want to make sure my kids are not drawn into the 9-5 life.
Here are a couple that I have come across so far:
1) Allowance based: give each kid an allowance and explain that a % must go to investing. To keep it simple have them choose a stock from a good company (Disney, Hershey, Fisher Price, coke) something they relate to. Purchase one share, frame the cert. in their room and sign up for the dividend re-investment plan. Then at each semi or annual statement purchase further shares from there allowance fund (this way you avoid all the brokerage fees.
I like this concept because it gets them in the habit of investing and thinking about their future. Another note was the author suggested that the parents match the investment, as the kids got older any extra funds started to go into the investments ratherthan be wasted because the kids figured out they were getting free money.
2) Car motivation: In one of the books (I think RD) he had a friend who gave his kid $3,000 for a car but told him he needed to turn it into $6,000 in the stock market before he could buy the car.
3) Start your own business: My dad, being an antique dealer set us up with our own side businesses. Typically selling a particular item through trade magazines (went something like this, he would find a large stock of an item, say back issues of a magazine, we would post an advisement for that item along with our mailing address for someone to order our catalogue and then we would fill the orders as they came in)
4) My Grandmother's method: My Grandma did a clever thing when I got my first job (washing dishes at a local inn) she agreed to match every dollar I made if I showed her good records and bank statements. So I kept the best accounting books a kid could. (Unfortunately the job only lasted 2 months so the habit never really stuck).
Does anyone have any other strategies to get their kids $$$ savvy?
Anything you remember working on your kids?
Or what worked on you when you were a kid?
I'm looking for any ideas I really want to make sure my kids are not drawn into the 9-5 life.
Here are a couple that I have come across so far:
1) Allowance based: give each kid an allowance and explain that a % must go to investing. To keep it simple have them choose a stock from a good company (Disney, Hershey, Fisher Price, coke) something they relate to. Purchase one share, frame the cert. in their room and sign up for the dividend re-investment plan. Then at each semi or annual statement purchase further shares from there allowance fund (this way you avoid all the brokerage fees.
I like this concept because it gets them in the habit of investing and thinking about their future. Another note was the author suggested that the parents match the investment, as the kids got older any extra funds started to go into the investments ratherthan be wasted because the kids figured out they were getting free money.
2) Car motivation: In one of the books (I think RD) he had a friend who gave his kid $3,000 for a car but told him he needed to turn it into $6,000 in the stock market before he could buy the car.
3) Start your own business: My dad, being an antique dealer set us up with our own side businesses. Typically selling a particular item through trade magazines (went something like this, he would find a large stock of an item, say back issues of a magazine, we would post an advisement for that item along with our mailing address for someone to order our catalogue and then we would fill the orders as they came in)
4) My Grandmother's method: My Grandma did a clever thing when I got my first job (washing dishes at a local inn) she agreed to match every dollar I made if I showed her good records and bank statements. So I kept the best accounting books a kid could. (Unfortunately the job only lasted 2 months so the habit never really stuck).
Does anyone have any other strategies to get their kids $$$ savvy?
Anything you remember working on your kids?
Or what worked on you when you were a kid?
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