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Parents need to be extremely careful to impart the right kind of financial education to their children so that they can grow up to be financially responsible individuals. The best part of teenage life is the taste of financial independence and this is not only their favorite part of growing up but this is also the time when they tend to take wrong decisions which later on boomerang in the long run. Investment is one such topic that needs to be discussed with your teenager so that he doesn’t end up making wrong investments that screw up his future life. Here are few points that you should take into account if you’re eager to impart the right investment advice to your teenage kid. Check them out.
Avoid debt at any cost
Remember that if you wish to become wealthy, debt can be the biggest obstacle in your path which will bar you from accomplishing your goal. Although a college education is crucial for the success and development of your life, yet you should be aware of the current bigger picture and have a clear idea of the soaring student loan debt in the US. But be it student loans or any other type of loans like personal loans or credit card debt, you need to remember that debt needs to be miles away from you if you wish to lead a secured financial life.
Incorporate the habit of saving money
This is deemed to be one of those toughest habits that need to be incorporated within young adults. The voice inside you which prompts you to remain a spoiled brat never goes out. When you’re a teenager, you won’t have too many bills as you wouldn’t have too much money anyway. Nevertheless, being a teenager doesn’t excuse you from saving money just because you don’t have too much. With whatever you get from your parents in the form of allowances, you should try to save a certain percentage of the amount so that you can at least learn the art of saving money.
Educate yourself on bonds, stocks, and investing
You need to commit to finding out more knowledge on investment before you start as an investor. The field of investment is indeed a confusing one and unless you know all the intricacies of investment, it is always advisable not to tread the path. Learn how you should research stocks, how you should read balance sheets, how you could figure out the value of things, and how you can avert falling into any traps. The stock market is 500 years old and hence things will definitely get interesting once you get to know more about the dos and don’ts of investment in the stock market.
Therefore, if you want to impart the right kind of financial knowledge to your teenage son or daughter, take into account the above-mentioned advice and tips.