The ups and downs of the stock market can be intimidating and extremely volatile. This volatility is precisely why kids should start investing at an early age says YVT CEO who is a staunch advocate for teaching children how to be mindful and to show emotional intelligence.
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Industry experts say it will be beneficial for kids ages 8 and up to be exposed to the stock market.
The earlier a person understands how to invest, the better chance of that person investing in the future. Teaching the basics of investment exposes your kids to understand how businesses work, how to grow money, and hopefully how to make investing decisions.
“Children should first understand the basics of finances before learning to invest.”
Start with saving if possible part of their “allowance”, and learning to delay gratification. These skills should be taught, practiced, and used before moving on to investments. Children should have personal finance topics “nailed down,” such as understanding the value of money, budgeting, savings and compound interest. It is more productive to start talking to children about investing only when they’re in their “tweens” — between the ages of 8 and 12.
“Stocks can be a metaphor for life in several respects. Life is not a straight-line.”
it doesn’t matter if it’s real money or fake money – and you lose, there’s a certain feeling that happens. You get upset or angry or annoyed or frustrated, this gives children the chance to learn how to recognize and understand emotions and then “shift” to a more positive state, building “emotional intelligence.”