Teach the children well

In leading by example, parents can pass on valuable, lifelong insights into the world of saving and investing

- DAVID THORNTON

We live in a financial world where all choices come down to what we can afford, so it makes as much sense to in stil in your children an understanding of finance and investing as it does maths and science. But when and how do you do it?

Probably the most important thing to do is involve them in financial conversations and lead by example. Actions have a greater impact than opinions and it’s no different when it comes to teaching your children valuable lessons.

“Your beliefs become theirs,” says Vanessa Stoykov, chief executive of Evolution Media.

“Whatever you learn from your parents is usually how you manage money, or you do the exact opposite because you hated how they managed money. If your children see you investing, they’ll be more inclined to replicate that; if they see you struggling, they’ll probably learn scarcity.”

Equally, pointing to other examples can add credibility to your own actions. “Access to seeing how other people live is important. If they see it and want it then they’ll emulate it,” says Stoykov.

The first step and one you can start as early as age three is teaching your kids how to save.

As they get older you can move on to teaching them how to invest. This way they learn that without the former (saving), they simply can’t do the latter and that you need to get capital from somewhere to make your first investment, says Stoykov.

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