OneInsure Blog
Post By Arnold Monis
5 Financial Tips Your Kids Should Know Right Now
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Smart Financial Tips
A smart man learns from his mistakes. A wise one learns from the mistakes of others.
— Anonymous
As a parent, it is your responsibility to ensure your children are wise by the time they are out of their teenage years. And one of the most useful things they will ever learn from you is money management.
- How to make it
- How to use it smartly
- How to grow it
- How to make your money work for you
This piece delves deeply into 5 tips every parent should ensure their kids know before they go into the big, bad world.
Small Sums of Money are Important
Piggy banks have existed since the 1400s. Nothing lasts for 600+ years unless it has a very important role to play in society. From the humble piggy bank, children realize the value of small savings. If your child has the habit of saving small sums of money, waiting for the collection to grow, and then being rewarded with a toy or a trip to Imagica using the money from the piggy bank, you are a great parent. This is an invaluable lesson for life.
Moral: Big things in life are achieved through small, consistent efforts. No shortcuts.
Don’t Hoard Savings, Invest Them – That’s Way Cooler
In this generation of the Internet, kids are savvy and definitely know about the term “investments”. Your task is to introduce it to them by showing your investments in practice. As soon as they are teenaged, they are more than ready to know that along with working hard for money, they should also know how to make their money work hard for them.
Small investments in life insurance products, ULIPs, and other products make a truckload of money in the long term with small, disciplined investments.
Moral: Your kids need to know that compounding is the 8th Wonder of the World.
Investments – Break It Down
The concept of investing is pretty simple. You put in money to help a fund or company grow, and as they grow and make profits, those are distributed with you and all those who have invested in it. Put that way, investing is the best concept a child can explore as s/he grows. It rests on you to make good investments and set a good example as to how it is done.
Moral: Explain how investing is offering help and getting good will back as extra money.
No Such Thing as a Free Meal in This World
This one is the most important of them all. Encourage your children to always be fair. Coach them that resorting to cheating or shortcuts can only lead to bad results and mental chaos. There is no such thing as a free meal in this world; everything of value has to be earned. And just as there are no free meals, there is no such thing as quick money. Social Media and the Internet will entice them with stories of overnight millionaires. It is your duty as a parent to teach them otherwise.
Moral: Reality is quite different from what kids see on YouTube and Facebook. Working hard is important.
Life Is Unpredictable, But Your Children Are Protected
Realistically speaking, life is unpredictable, and it is important to secure the lives of your loved ones. When should your kids know that? Life insurance is not a topic that many people are able to talk freely about. You can’t discuss life insurance without talking about the inevitability of having to use it one day, and that makes many people uncomfortable. But, introducing your children to life covers you have taken to protect them will make them aware of your care and concern and will ensure they do the same for their kids in the future.
Moral: Your kids are the future of this world; treat them as such. They are mature enough for uncomfortable conversations.
Well, that's a wrap! For assistance with any insurance policy, feel free to contact OneInsure at 86559-86559 or support@oneinsure.com.
