Teach your Kids about Finance, Business and Investment to Secure their Financial future
Few days ago, I was assessing my late Dad's achievement for 75 years on planet earth and it awed me how hardworking his generation was. I discovered that he had been exposed to the business world at 16, yet, without so much of the Western education. Looking at myself and how late I got to know and engage business was something to be sorrowful about.
I lost over $1000 to a scam at 25 because I lacked understanding of the distinction between business and investment. This happened three years after obtaining my Bachelor degree in Engineering. Years later, I have come to discover how many young people in their early Twenties have become millionaires and CEOs with great standing.
Just few days ago, I learnt that the CEO of Uptrennd was just 29 and he's way worth millions of Dollars at that age.
My Dad, since he wasn't opportune to be schooled too far, thought the best gift he could give to his children was to have them educated to at least a first degree level under his roof. This he successfully achieved. Sad, I failed to attained all he did at the early age that he did because of late exposure.
Keywords such as capital, assets, profit, Return on investment (ROI) Annual profit ratio (APR), Risk index (RI), debt, loan, interest, income, cash flow, break-even, taxes, liabilities, recurring expenditure, etc, should be made clear to them as it relates to business. It should never be assumed that they were taught in school as many do not make meaning until we experience it.
I personally never knew the application of those words until I was probably 22, yet, I could write long essays about them for marks in school. The gruesome loss at my early stage in the business world was due to ignorance on how investments really work.
Here are a few reasons your kids should be Financial literate:
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It gives them all the knowledge on how to handle money
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it helps them plan effectively with the money you give them,
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It makes them financially responsible,
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It makes them to learn how to be independent;
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It equips them on how to maximize investment opportunities;
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It's a a creativity booster;
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It makes them bankable
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It makes them better business men/women in the future,
Things are Changing Drastically
While technology was gradually reshaping the world in terms of spending, priorities, processes and results, the emergence of the corona virus pandemic has surges a radical ans drastic adjustment from the normal to the new normal life. Today, we are no more talking about stocks, we are trending with digital assets however, the basic principles of finance management, economics, etc are still valid or at least adjusted a little.
Trying to understand cryptocurrency, blockchain, DeFi, etc, becomes harder for those who lacked the basic knowledge of finance, investment and business. We must deliberately break these cycles for a more financially secured future by subjecting our kids to financial training.
I would be glad to share thoughts with you on the best way to teach kids about finance, investment and business. Let's maximize the comments section of this blog post.
