Teaching Children to Save and Invest
Teaching children a few simple lessons about saving and investing can get them off in the right direction toward a secure financial future.
The Value of Savings
The lesson is simple – if you want something, you have to save for it. Talk to your child to find out what it is that he or she wants. Once you know what it is and how much it will cost, work with your child on how to save for it.
Give options for reaching his or her goal. If your child receives an allowance, talk about saving all of the allowance for a certain number of weeks versus saving half of it for twice as long. This teaches your child to view their options and make informed decisions about how to manage money.
Encourage Children to Save Their Money
Once your child has learned how to save money to achieve his or her goals, it's time to talk about how to earn money through interest accumulation. Learning about the benefits of compound interest should encourage children to invest their money in income-producing securities.
Stay Involved in The Process
Most children look to their parents as a primary source of financial information. This makes it important for you to stay involved with your child throughout his or her learning experience with saving.
Practice What You Preach
You can talk to your child about investing until you're blue in the face, but chances are good that he or she will not pay close attention to the subject unless you're following your own advice.
Take a moment to speak to your child about investing in their future. Then, call, email, or visit with your local State Farm® Representative who will help you look at the options that are right for you and your child.
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Please read the applicable Fund Facts before investing. Commissions, trailing commissions, management fees, and expenses may be associated with mutual fund investments.
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Neither State Farm nor its agents provide tax or legal advice. Please consult a tax or legal advisor for advice regarding your personal circumstances.
State Farm Investor Services (Canada) Co. Aurora, Ontario.