Growth and Jobs | Educate Your Child About Investing – Financial Advisor | New

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IT IS important to educate your children about investing as they become more money and finance conscious, says Peta-Gaye Miller Walker, Assistant Vice President of Sales and Client Services at JN Fund Managers.

Miller Walker said it’s wise to start familiarizing them with the principles of investing and arm them with financial tools they can incorporate into their adult lives.

“Start by explaining to the child that he can earn his own money and create wealth for his future. Get together and discuss an exciting financial goal they want to work and invest towards.

Miller Walker encourages parents to have the child use a portion of their allowance funds to build an investment portfolio towards this exciting financial goal; have discussions with them about the investment; and include them in family reunions.

“Let them make their own budget as you walk them through this process. Stick to a schedule and where, or if possible, take the child with you to the bank or ATM. Let them make the deposit, or let them watch first while you transfer online and have them click the button to confirm the transaction, ”she said.

Miller Walker added that parents can give children chores and reward them with a stipend as an incentive and encourage them to devote a portion to something they want. She also advised parents to watch financial news with their children and be enthusiastic when they talk about what stocks they would buy and why. She added that children should be encouraged to buy stocks in good companies with which they are familiar.

“Encourage them to invest the money they receive as a gift. Show them statements or checks that you receive as dividends from your investment, ”she advised.

Miller Walker noted that children should be educated about saving and investing at the same time, and the different approaches to these two activities, as this will teach them to be disciplined by putting money aside from an early age. age. “Explain to them exactly what you are doing and how it can benefit them in the future. Don’t underestimate what a child can understand, ”she said.

Explaining which type of investment is suitable for a child, the investment advisor of JN Fund Managers said that due to their young age they are able to take more risk, with a longer investment period.

“We recommend that parents or guardians have a portfolio containing equity items. The stock market can be, and has proven to be, one of the most profitable investment vehicles in the long run. Buying stocks is for people who can take a higher risk and have a longer investment period, preferably five years or more, ”she said.

Miller Walker said JN Fund Managers has products that are suitable for child investors. “We can build a portfolio with parents or guardians to potentially invest in our global equity, global diversified and global fixed income mutual funds. Our AIP (Automatic Investment Program) also allows people to start with a minimum of J $ 10,000, and on a monthly basis, invest a minimum of J $ 10,000, once a standing order through your financial institution or a salary deduction is established, ”she added. .


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