Teaching Your Children to be Financially Savvy

financially-savvy-childrenA few weeks ago my husband took our two daughters to meet with a financial advisor. Our oldest had read an article in a magazine that I subscribe to for her about a 12-year-old girl who invested 10% of any money she received. The article intrigued my daughter, who turned 12 last month, so she shared the idea with my husband and myself. We have a friend who is a financial advisor/investor, so my husband said he would set a meeting with him. Since my oldest was going to be making money, our 9-year-old said, “I’m going too. If she’s going to get rich, so am I!”

My husband and the girls met with the advisor, and he explained investing to them. He told them he thought mutual funds would be best for their money and long-term investment. He wanted some time to research stocks they might know, so he asked the girls to wait a week. Friday night we met with him as a family, and the girls invested their first amount of money into their new mutual fund. The advisor printed a list of all the companies associated with the girls’ mutual fund. They were able to recognize many of them. He did also explain that an investment takes time. See, my 9-year-old thought she might be rich the next day. I had to tell her it isn’t the lottery; it’s an investment of time and money. The advisor told her the two main ingredients are money and PATIENCE. Well, guess what? She knows about money but has no clue about PATIENCE! My husband and I both just laughed.

We are so very proud of the girls. The advisor gave them an online code so they can check their investment whenever they like. Each girl also has an envelope at home. Whenever she receives money for birthdays, Christmas, or from grandparents or other relatives, 10% goes into the envelope right away. The girls must have at least $50 to make an investment deposit. Of course they may add more, but they are required to at least present $50. The oldest daughter had a birthday last month, and she received $80. Into her envelope she slipped $8.

We will see how this works, but my husband and I are so excited because the idea came from our daughter. We are even more excited that the younger daughter joined in; she is our more frivolous spender. I think this venture will be more of a challenge for our younger daughter, but only time will tell. It was a very valuable experience for all of us.


DeiDei Boltz is an educator with 18 years of experience. She has taught kids grades 3-12 in English, library science, reading,
computer technology skills, and Internet safety. DeiDei is an avid reader and a lifelong learner. She is always on the lookout for new ways to reach the 21st century learners in her classes. In addition, DeiDei is a mother to 2 girls and has been married for 16 years. You can find out more about DeiDei at her blog Sassy-Stylish-Studious Mom.———————————————————————————————————————————————————————
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  1. I like this idea! How great that she got so involved that she wanted to make her own savings box!

  2. Natalie Printer says:

    That’s amazing! They are going to have some great financial savvy when they grow up.

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