Circle of Investors - Getting your children involved in finance

As parents, we cherish precious moments with our children and strive to create lasting bonds. But have you ever considered embarking on an exciting investment journey together as a family? 🌟 Can you picture the valuable lessons and financial growth you could experience as a team? 

Involving your child in investing can have several benefits, not only from a financial perspective but also in terms of teaching valuable life skills and lessons. Some of the potential benefits include:

• Financial Literacy: Introducing your child to the world of investing can help them develop a better understanding of financial concepts, such as stocks, bonds, and the concept of risk and reward.
• Long-Term Planning: Investing encourages children to think about the future and set long-term financial goals, which can instill a sense of responsibility and discipline.
• Math and Analytical Skills: Investing involves mathematics, data analysis, and critical thinking. It can improve your child's math skills and analytical abilities.
• Economic Awareness: Understanding how investments work can lead to a greater awareness of economic trends and financial news, helping them make informed decisions.
• Patience and Delayed Gratification: Investing often involves waiting for investments to grow in value. This can teach children the value of patience and delayed gratification, important life skills.
• Risk Management: Learning about investments includes understanding risk. It can help your child learn how to assess and manage risks in various aspects of life. 
• Ownership and Responsibility: Owning shares of a company or assets can instill a sense of ownership and responsibility. Children may become more interested in a company's performance and management decisions.
• Diversification: Teaching your child about diversification can help them understand the importance of spreading investments across different assets to reduce risk. 
• Financial Independence: As your child grows older, their involvement in investing can help them become financially independent and make informed decisions about their own money. 

When involving your child in investing, it's essential to do so in an age-appropriate and educational manner. Start with simple concepts and gradually introduce more complex ideas as they grow and mature. Additionally, consider involving them in decisions about their investments, such as choosing stocks or funds to invest in, to make the experience more engaging and educational.

Navigating the path of building financial knowledge with your child can be a complex journey.

In our EasyDoesIt podcast, we were joined by Cleola Kunene, Head of SME Development and Customer Experience (CX) at the Johannesburg Stock Exchange (JSE); In this episode, she shares an intriguing story about how she introduced her child to the world of investing. Listen to the episode here or below.

On EasyEquities, a parent or legal guardian, you too can open an account for your child by navigating to the open an account for your child, in the menu option.

When involving your child in early financial lessons, it's crucial to approach these interactions with courtesy and clear communication, and while parents can provide financial guidance, it's important to tailor these discussions to your child's age and understanding, fostering a supportive learning environment rather than offering specific financial advice. For research and education, be sure to check out our EasyBlog and EasyResearch portal. You can also have a look at our EasyCompare website, where you can compare different South African listed exchange-traded funds (ETFs).