What Kids can learn from investing,
- The value of money
- Learn about world events and how they effect them and there money and there life
- The importance of planning for there future
- Retirement planning
- How investing can effect all aspects of there life
I read the other day that Ontario is finally discussing including financial management courses in our school system. Since 2011, the province of Ontario has been working to upgrade financial literacy in curriculum and all documents released now include a section that makes connections between financial literacy and the curriculum area. The ministry has included financial literacy concepts in revised curriculum where appropriate. The goal is to embed financial concepts throughout the provincial curriculum from Grades 4 to 12. Students learn financial skills such as understanding money, consumer awareness, personal finances, budgeting and money management. Financial literacy is brought into the discussion as students learn about their place in the world, as a responsible and compassionate citizen or when they study different economic systems. Implementation of those policies are the responsibility of local school boards. A spokesman for the Toronto District School Board, the largest board in the province, said much of what is taught is up to individual teachers.
I started to teach my Son when he was 16 the importance of valuing money (the concept of how hard it is to make it and how easy it is to spend it unwisely). Now in the begining we set him up with an account from the local bank (the kids account that didn’t have any fee’s) which he found very boring and didn’t pay much attention too. It wasn’t until I started to discuss the workings of the stock market that I really got his attention. I did something that most of you might find a little crazy, when he turned 18 I borrowd and put into his RRSP $5000 dollars and set him up with a trading account and bought him some very safe stocks which pay dividends and since the markets have been bullish over the last few years almost instantly he was making money in the markets. We almost daily talk about different stocks and the markets in general. Since the markets are geared and re-act to World events we also talk about what’s going on the world and where he can make more money through research of these world happenings. So he is getting an education about the world through research and how it’s effects his bottom line. Through this reseach he suggested buying a Canabis stock (Canopy Growth Corporation) which at the time I didn’t think much about it and said why would you wnat to invest in that. So we had a long discussion about it and he explained what was happening with these companies and legalization in Canada and some the US states. I said okey if you feel strongly about this investment you can take 10 to 15% of your portfolio and by some stock in Canopy Growth Corporation). Well his small investment has turned into today almost $20000. Cannabis stocks are considered risky at this point so 10 to 15% is the limit one should have of there portfolio in risky investments. However a good portfolio balance should consist of some risk especially when you are younger. My Son is now well on his way to creating himself a great retirement pension and learning about risk not only risks associated with money but making decisions about many aspects of his life and the risks of his decisions learned through investing.
So your reading this and saying I know nothing about the stock markets so how do I get my kids into it. Some links below for some information.
In conclusing you could also talk to your local schools or any other organization about setting up programs for kids to help yourself or your children learn about money and investing.
I hope you enjoyed this post and I welcome your comments.