Financial Independence and Your Children – Part 6
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Teaching our children about financial independence is essential. We often encourage our children to do what they are told and get a job, which are noble pursuits. However, if we do not teach them the skills to become financially independent they will wind up living from paycheck to paycheck like the majority of people.
To break the cycle of living from paycheck to paycheck, we need to educate our children about handling money. Our last entry discussed taking the fear out of the stock market for our children by letting them create their own dummy portfolios. This invaluable experience will put them ahead of the game.
Our suggestion today gets more bold. Once your children have successfully tracked the market for a few months and built viable dummy portfolios, let them invest on their own. Of course you wouldn’t let them make a major investment, but give them the opportunity to really put their skills in action. Give them a few shares of stock so they can watch their progress. This makes the process real for your children, rather than just playing in the Internet. Their gains and losses are actual so they can really get a feel for how the stock market and business work.
In our final entry about financial independence and your children, we will discuss additional ways to invest in stocks and bonds to create a more secure future for your children. After all, children will be the future of tomorrow and we want them to have a greater understanding of financial concepts than the people who came before them.
Tags:Financial Freedom Financial Independence
June 11th, 2008 at 1:29 pm
I agree with your statement that teaching our children about financial independence is crucial. It is more important now then ever. Schools are not teaching our kids about money. We as parents have to take the responsibility to teach our kids about money.