Catch Them Young

The growing years of a child is an aspect that should not be treated with levity as this is the period when habits are formed. Raising successful children is not just about providing for their welfare and educational needs but also instilling important principles in them.

A child’s financial habits usually determine his future finances. A child who has imbibed the habit of investing cash gifts received from relatives, friends and awards would eventually become a financially prudent adult. Parents should take the responsibility of educating their children on savings and investments by encouraging making them to set aside a little from their pocket monies and also encourage them to go as far as earning extra monies by taking up some chores. 


In view of the rising inflation rate in this part of the world, there is a need to graduate from saving these monies to investing them, as the usual trend is for children to save monies in piggy banks which would not yield an additional income. Interestingly, there are zero to minimal risk asset classes where funds can be invested in for the long term. Such investment vehicles include; treasury bills, bonds, mutual funds and stocks. They can make subsequent investment as they earn more and nurture their portfolio.

Conclusively, early investment helps a child form a healthy spending culture; provide for the child’s future needs and make him financially independent at an early age. 

Tips on how to get them started

•Lead by example: make sure you invest

•Open a suitable investment account for your child(ren)

•Make sure all the money goes into the account, some children can stop when you spend the money on something else

•Let them know when the investment yields an income

•Review their statements with them  periodically


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