Although many parents think that teaching about money is still a taboo topic for children, they are wrong.
Many studies have shown that children who start learning about finances, investing, saving, and judicious use of money earlier have a more carefree future.
The most important thing is to teach children financial literacy and the responsibilities they must have to ensure a better and brighter future for themselves.
Many studies have shown that about 90% of adolescents have the desire to learn everything about finances, but in most cases, they have no one to teach them.
There are numerous options for children’s credit cards and investment apps such as debit card for kids investing that teach children everything they need to know about the financial world.
Explain to the children where the money comes from
Before you start teaching children about money, you need to explain to them where the money comes from. That money does not come from magical trees and from magical machines (ATMs).
Money must be treated with respect, even though it is one of the main secondary things in the world, it is still necessary for a good and healthy life.
The best way to explain money to younger children is through play, while older children can understand why parents have to go to work every day and work hard to provide for their children and family.
Credit cards are a tool for learning financial literacy and investing
This type of card for kids is the best tool you can give your kids to learn everything they need to know about finances.
The possibilities that this type provides are countless, from learning to finance, saving, investing, rational consumption, earning, and donating to those who need help the most.
In addition to teaching everything about finances, the offer includes tables of obligations and chores that parents can adapt to each child.
Together with the children, parents compile obligations on a daily, weekly, and monthly basis. Children can earn money by doing curricular and extracurricular activities within a given time limit.
If they break the deadline, they bear the consequences, a reduction in pocket money and additional obligations for the next week or month.
The process of getting a card
When parents choose the option that is the most convenient and best for their family, then they bind their accounts.
Parents must provide private personal information of children such as name, surname, date of birth, and place of residence.
After filling in all the necessary information, the account is activated by placing money on it and is ready for use.
Only some options offer within their offer the possibility of earning and investing money. Therefore, parents must thoroughly research each option before deciding which one is the best for their children.
Investing for children
Within certain options, there are offers and shares in which children can invest their money. This type of investment is similar to the world of adults, children can choose from various companies in which they can invest their money.
Among the more popular investments are Netflix, Apple, and Google. Children can set aside part of their earnings and pocket money and put it into savings and investments.
Together with their children, parents choose which shares kids can invest money in.
Of course, we are not talking about big numbers here, but the offer is designed in such a way as to imitate the real world of finances in which adults invest.
Children need to know that by investing and making good choices, they can create some wealth.
Children can also monitor at any moment whether the value of shares is increasing or decreasing.
Children can also divert part of their savings into an investment if their parents approve.
This is a great way to prepare children for the world of adults, where they will have experience and knowledge when they grow up and start investing.
Benefits of savings and investments for children
We don’t need to emphasize to you how important it is to teach children to save and invest money on time.
When children master how money works, they will become creative and incinerate to get into the essence as much as possible.
As parents, you always want to protect them, but children learn best from their mistakes, so it’s better to let them do what they want sometimes.
Of course, all this takes place under the supervision of the parents, and every investment cannot be made without the knowledge of the parents.
About the Author/s
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.
