I made my first investment at age eleven. I was wasting my life until then.
Warren Buffet
Children are different, therefore, their interest in investing could vary enormously. In any case, it is important for kids to understand that the earlier they start, the sooner they will be financially free. However, it is not that easy for parents to find the right time and way to start talking about it.
If you scored low in “Saving/Investing” category in Financial IQ Test for Parents, please check the investing activities below!
Below, I share 2 ways to make investing interesting to your kid – let’s start with games!
Top 2 things you could do with your kid right now
1. Play Monopoly game – regularly
Use the time spent playing Monopoly game with your kid to teach him finance and investing. The key teaching technique here is questioning:
- Why did you lose the game this time? Why did you win?
- Can you win the game if you don’t buy property?
- How long do you think it would take you to get a hotel on the land in real world? Etc.
Just observe the game and strategies used by your kid and ask questions (that’s how I did it!). Don’t be discouraged if you kid struggles with the answers at first. Be persistent and your kid will figure it out. Asking questions is the most powerful teaching technique.
2. Play Cashflow classic
That’s another game where your kid can learn many things, including:
- Earning passive income
- Basics of earning active income
- Expenses basics
- Difference between assets and liabilities
- Investment and borrowing basics
- Importance of cashflow
When I tried it with my family, our results were amazing. Check it out yourself and let me know your results!