I’m writing this for both — the youth of our nation and those people of around our age, who haven’t yet started making smart money choices. This is an attempt to inform and inspire individuals to make better investing decisions, and to share my considered belief that that while even at a later age there is only an upside to starting to invest, it is always better to start early; in fact, the earlier, the better.
Anyone who begins to invest at an early age can stand to reap greater benefit. By investing early, you are part of the financial world, and begin viewing it more broadly. And that awareness and orientation always brings with it a lot of benefits. So if parents or guardians can inculcate in children the excellent practice of saving from an early age, it could lead to a better and more stable future. Because it is parents and guardians of children who are responsible for teaching them about investments and savings. Inexplicably, the education system too does not help instil the savings habit amongst school children at a young age. So it is left to us parents to help every youngster and I’d be delighted if you can take back something from here that that would you empower your child with the importance of having a savings habit, well, that will help have a better, safer future.
So here are five ways you can help educate your dear young ones about how to make better investment decisions at an early stage in life.
- Roadmap –
First, map out a plan and what you want to accomplish by participating in this activity. Calculate how much risk you’re willing to take when investing, and since it is money-related, you should always make a calm rather than a hasty decision. One must invest one’s money wisely so that whatever the risk, the investments will reap rewards due to the careful planning.
2. Risk –
When it comes to money, one must obviously be very cautious as there is always an element of risk involved. Risk is an unavoidable and even integral part of investing — the higher the risk, the greater the return on investment. So, after calculating the amount of risk you’re prepared to take — an while setting an example for your young ones, less of risk is the best way to move ahead with your investment strategy.
3. Pick out the Mix of Investments –
As that old adage goes, it is important not to put all the eggs in one basket. One must actively practise dividing one’s money across various investments. As a result, one must be knowledgeable about all types of investments and ensure that the money is not concentrated in a single investment but distributed among many investments based on favourable factors. If anyone is not aware of the risks and needs assistance, they must contact a financial advisor who can assist them in making the best decisions based, of course, on their risk appetite.
4. The Savings Mindset –
The only active way for an individual to make investments is to have a savings mindset. Savings fuelinvestment. Everybody earns an income from whatever they do. However, whether a person spends all their money or spends some and maintains a good savings habit, will determine the extent and quality of investment decisions. Investments help make money with the idle cash that an individual possesses in the form of savings. As a result, each person must develop the habit of first saving, and then using that money to make wise investment decisions.
5. Beware –
Since this whole concept revolves around money and financial matters, please make informed decisions. You, and you alone, are entirely responsible for the whole procedure. Any damages or losses you incur are entirely your responsibility, and not of the mediator or the company concerned. As a result, be wary of frauds, risks, or scams. Keep yourself informed and forewarned about such practises, and also about the business, plus other factors that can impact the business conditions and environment around you.