by HongKong

Created on: February 21, 2008

Teaching (our children) is the life-long efforts which required consistency and discipline. Teaching our children about making investment covers a wider range of knowledge and experience. However, it can be summarize and simplify even for layman and the basic requirements to teach in investment are not difficult to follow.

Let's scrutinize the methodology of simplified method on teaching your children about investment in a more practical way.

1. Start now. It will never be too late if we take action by today. Start as early as possible is my first recommendation. The earlier you begin the lesson and practice to our kids, more effective and easier for the kids to catch up. Kids are learning and "copying" our way of doing thing, same for investment. Most importantly, the earlier they get exposed to the idea of investment, (in long run) the possibility for them to build their own wisdom of investment are greater!

2. Basic. Let's go back to the basic of money. Yes, I do mean money. Let them have a stronger sense of money and how money works. Our ancestors taught us how to survive by learning and using tools for hunting. Nowadays, we need to learn the power of money and how to leverage our wealth by using money. Teach them (from) the fundamental and the history of money,to the importance of money, to the identification, to the feeling of money, the "working principle of money" and finally, the power of money (how to use money to leverage wealth).

3. Rewards. Children love rewards. Reward for them is a form of recognition. Recognition of their achievement, recognition of their hard works and "paychecks" of their results. Reward the kids with a simple and baby-step of investment.

4. Discipline. Discipline come after consistency. A well-disciplined parents who's showing consistency and discipline in investment set a model for the younger generation to follow. We all make mistakes, don't be afraid of making mistakes. Be consistent on investment, share (with your children) the knowledge of investing in regular basis. Know the right investment at the right time. Fear and greed play a very important factor in investment. As long as our children is well disciplined, they'll learn the way how to overcome the fear and greed.

5. Practices. Start a saving account for the lovely kid. (bear in mind that the purpose of "saving" is to reward them, try not to over-emphasize with saving as compare to investments.), reward them at the end of month with their dream-toys. With the habit of saving, we brainstorm our kids with the importance of "planning, budgets and debts". Kids
enjoying their "rewards" by planning how much they can afford and how long they need to achieve their goals...parents can even expose them with "spend on the right time" and they purchase power or the power of money will be under their control. Over-budget or over spend will end up in debt and let them learn how to manage their "debt" (...or advance money given by parents)

6. Make it (investment) a habit. Investment is a habit. A habit to leverage and park our hard-earned money, a habit in personal development (how to overcome fear and greed), and a habit to make a decision (how to select the right investment at the right time).

Say is always easier than done. Being a good investor is not only about making money, if you consider in detail or take a closer study in investment, it is not difficult to find out that its all about common sense. Remember, what really make us different is the (slight) additional efforts that you put in!

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