The importance of learning about finance and investing is one of the most crucial things you as a parent must teach your children.
What many parents avoid is talking about money, because they think that in this way they are protecting their children and letting them enjoy the charms of childhood.
Not realizing that they are creating a problem for them later in life.
Although it is never too late to teach children about finance and investing, children should start as early as possible.
Today, many options allow learning financial literacy, responsibilities, acquiring skills, and investing for kids in the market. It is up to parents to choose the option that is best for their children.
One of the most important tools for learning about finances and investing as well as responsibilities is a credit card for children.
1. All The Advantages For Children Of Having A Kids Credit Card
This type is the best tool for learning all financial segments from earning, rational spending, investing in shares, donating to charities, making a savings plan, and doing chores and duties.
The process of opening an account is simple, parents link their account and provide basic information about their children.
After they fill in all the necessary information, they can activate the account when they deposit money on it and it is ready for use.
A.) What Kids Can Do With This Card
Within the application, various tables are easily adaptable to all ages and obligations that children have. Together with the children, parents make daily, weekly and monthly plans.
Children have a certain deadline within which they must fulfill their assigned activities and obligations.
If they do not comply on time, they will bear the consequences of their actions.
There are negative and positive points, which parents can financially reward children who fulfill all duties within the given deadline.
When it comes to earning through this card, BusyKid has a BusyPay option that allows anyone to pay money to the child’s account with the appropriate QR code.
A certain percentage of each payment of pocket money and earnings must go into the savings plan.
The money in savings is locked and the children do not have access to spend it.
Children can access the savings plan only with their parent’s approval.
2. Investment Within The Application
Within the application, children can choose a company or brand whose shares they want to invest money in.
They can set aside a certain percentage of their pocket money and earnings to invest in stocks of their choice.
This is designed to help children understand how the world of stocks works and to prepare them for the adult world.
Various companies are internationally known in which children can invest their money, such as Apple and Netflix.
At any moment, children can monitor the state of stocks, whether they are rising, falling, or stagnant.
3. Expanding Horizons
The more children learn about different companies, stocks, and how money works, the more things they will discover.
They will know how to think outside the box, they will not be afraid to take risks sometimes, and you will encourage them to always believe in themselves and their abilities.
It has been proven that children who are not restricted by their parents have an adventurous spirit and are more inclined to research and do not have such a fear of failure.
4. You Will Make Them Think Long Term
Investing in itself is a risk, but children learn how to think several steps ahead and in the long run.
They will engage in numerous types of research on their own, on various types of industries and topics.
They may ask for your advice or for you to introduce them to a broker so that they can explain things they don’t understand.
5. Your Children Will Thank You When They Grow Up
Many adults wish they had someone to teach them about finances and investing. Unfortunately, many had to learn by themselves.
Therefore, those children whose parents teach them proper and rational investing are already at an advantage over other children.
Investing is considered difficult, but it is not so, the goal is only to recognize companies that are worth it.
Children can invest in well-known companies such as Netflix and Apple, and these companies are constantly increasing in value.
Everything you teach them in their childhood, they will be grateful for in the future.
The whole process of learning about investing and the financial world will bring you even closer as a family.