Few months after I mentioned investing in stocks with my eldest son started his interests in investing. At first it was about the thought owning a part of his favourite fast food chain in the Philippines - Jollibee thru an online stock broker. He was delighted to know that at an affordable sum of money he can already "own" a company as big as that fast food chain.
Then a few days back I introduced to him why he should want grow his money at an early age. It was a relieve that he doesn't want to work abroad to earn a bigger income. According to him, it is still best to enjoy life and happiness together with the family. So I told him, then you need to be financially literate and grow your money!
First and foremost, we need to know why do we want to grow our money I told him. There should be a goal which you want to work on achieving.
Do you want your own house? Do you want your own car?
Do you want to take pleasure on travelling around? Do you want to help others?
If the the answer is yes, then you have a goal. And achieving one of these should not in any way affect the life style you want to live. There should be no worries on how are you going to pay up your bills after buying that dream smart phones. Or after helping a relative, deep inside you, you were not totally happy because it affected your budget for the month. Scenarios which you can only avoid when you know that cash out like these is replaceable because your money is growing.
So how to grow your money at a young age then, he asked me?
- You set your goals - visual, intellectual and financial goals.
- Live simple - stick to the basics until you are stable - emotionally and financially until then you can add some perks and leisure to your life style.
- Know where your every peso goes.
- Save as much as you can.
- Invest in companies you dream of owning (motivation is the key here since a child is still a child)
Bottom line is, let the children know the value of hard-earned money and the pleasure of growing of his own wealth at an early age. Do not under estimate the happiness this simple enlightenment would do to them that even as young as they are, they can actually control how stable they can become someday.