10 Vital Lessons To Teach Kids About Investing
We understand that parents play a key role in teaching their children about finances. As fathers, venture capitalists, and role models within the investment community, we believe that it’s vital to create positive financial habits that will set our kids up for success.
In recognition of Father’s Day, we’d like to share the Top 10 Lessons that we teach our kids about investing:
- Invest In Yourself. Apply education and experience to build a business. Invest a portion of your income in a portfolio that generates passive income to build long-term wealth.
- Take Risks. It may be difficult to step outside of your comfort zone, but you will gradually become comfortable with taking calculated risk. As a young adult, you have time to fail, recover, and learn from past mistakes. Know that with persistence, you will prevail.
- Pay It Forward. Address societal problems and help those in need. Use your wealth to give back through philanthropy and your knowledge to mentor and guide future generations.
- Invest In Relationships. Everything in your life revolves around relationships. Make a conscious effort to build quality relationships. Your relationship capital is worth far more than your financial capital. It is the key to unlock exclusive opportunities.
- Learn Delayed Gratification. Have patience during difficult times as you work towards a goal. When you learn to resist the temptation for immediate reward, you gain a greater sense of self-control which can help you achieve long-term goals faster.
- Keep It Simple. You’ll never lose with simple investment strategies. Understand where your money is placed, how much you’re paying for an asset, and how you will earn your return.
- Invest In Community. Invest in opportunities that fulfill basic human needs, such as food, shelter, connection, and other things we cannot live without. Realize that opportunities exist when you serve the needs of others.
- Plan Accordingly. Investing is equivalent to life management. Success is directly correlated to your willingness to be prepared, your ability to consistently make good decisions, and your understanding of how to effectively manage risks and rewards.
- Build Upon Assets. When you’re young, trading your time for income will be a requirement to survive, but passive income from assets will provide increased flexibility to dramatically improve your quality of life and secure financial freedom.
- Prepare For Rainy Days. Anticipate the unexpected, as rainy days can happen. And, if they do, know that they will be your responsibility, not your parents, friends or co-workers.
It’s never too early to start teaching kids about money matters. We talk to our kids about many aspects in life – money and finances should be one of those ongoing conversations. An early understanding of finances allows them to be better prepared financially and more savvy as they approach investment opportunities. Teaching kids about fiscal responsibilities can help set the next generation on the road to building their wealth.
What lessons are you teaching your kids about finances?