Financial skills are essential to being successful in life. As parents, we help our young adults develop the skills they need to find a job, get into university and balance their budget. But what about making their money go further? In the long term, investing is a fantastic way to ensure your grown-up children will be able to buy a home when they wish or make other big investments, such as university fees for their own child, paying for weddings or going on the honeymoon of their dreams.
Here are three steps to helping young adults learn to invest for the first time.
1) Start young
Investing for your child can help them to learn about the importance of making the right investment. Purchasing stocks and shares for a child is a great way to begin building a fund for their future and when they are old enough to start investing for themselves, this can be evidence of why investments are such a great idea.
2) Modern investing
There are many, accessible ways to invest these days. With apps and websites galore, it’s easier than ever to invest small and large amounts. Sit down with your young adult and go through some of the apps available. For young people with their first jobs, suggest they invest a little each week and promise not to touch that money until they reach a certain age. It will be good for them to see how the savings build, but also how the money grows because it has been invested. Using an app makes it quick and easy to see how money is growing and to change the risks attaches to your stocks and shares.
3) Give the gift of investment
For a big birthday, rather than giving cash or an extravagant gift, consider giving them an investment, whether that is a large scale purchase such as a home or car, or an amount of money to be spent on stocks and shares. A large investment will be a great way to show them how stocks and shares work and could one day become a deposit for a house!
Getting young people excited about investments can seem daunting, but doing so will help them to have financial stability in the long term.