It is important for parents to teach their kids about technology-based investing. Parents can provide their children with access to tech designed to teach them about the ups and downs of investing and in this way kids can learn the importance of financial responsibility and literacy.
There are many investment tech options available. Parents can learn about these options and choose ones to teach their kids how to navigate investment tech responsibly. From here, parents can set their kids up to become financially responsible adults.
Why Teaching Your Kids About Responsible Tech-Based Investing Is Key
Debt is a normal part of American life. Research indicates the average American has about $90,460 in debt. This is due in part to a lack of financial literacy.
Parents can use tech-based investing to teach their kids about financial literacy. For example, parents can give their kids access to technology that illustrates spending habits and trends. Kids can use this tech to understand how much they are spending each week and discover ways to save money. Over time, the tech can help children discover the best ways to maximize their savings. It can also give kids the insights they need to make informed purchasing decisions.
In addition, tech-based investing empowers kids to start saving at a young age. This helps children take a long-term approach to money management.
Several apps are available that parents can use to teach their kids about money management. These include:
Acorns: Provides an automated savings tool that lets kids invest spare change from everyday purchases.
Greenlight: Offers a debit card, banking app, and educational investing platform for kids.
Stockpile: Introduces kids to stock market investing.
Do not wait to start teaching your kids about tech-based investing. However, prioritize safety. Look for apps and tools that you and your children can securely access at any time. Only use apps and tools that come from credible sources. When in doubt, avoid apps and tools that raise security concerns.
3 Tips to Teach Your Kids About Responsible Tech-Based Investing
Teaching your kids about tech-based investing can be fun and educational. Here are tips to help you get started.
1. Talk to Your Children About Tech-Based Investing
Discuss tech-based investing with your children. Introduce the topic and explain how you intend to help your children use tech-based investing apps and tools. Explain the risks and rewards of investing and why it is important to manage money well.
Keep the lines of communication open about tech-based investing. Chat with your children about the topic regularly. This can help your children become more comfortable with tech-based investing. As your children get acclimated to the idea, they may feel excited about investing. At this point, you can share tech-based investing apps and tools with your kids.
2. Focus on Digital Literacy Skills
Make sure your children know how to navigate the internet. This requires you to teach your children the following digital literacy skills:
Online safety: Social media and other online platforms make it easy for kids to access a wealth of investing information. Yet, there are cybercriminals who use these platforms to target children and adults and try to steal their sensitive information. Teach your kids about cyber threats and the dangers associated with them. Explain the importance of not sharing personal information online, too.
Research: Kids can perform extensive investing research online. Encourage your kids to conduct plenty of research before they invest. You can show your kids how you evaluate potential investments and try to learn as much as possible about them. Then, your kids can do the same with their own investments.
Financial management: Children can set up and manage their budget in real time. You can provide your kids with access to apps and tools for financial management. Also, you can let your kids use apps and tools to help them comparison shop, save for retirement, and get the most value out of their finances.
Support your children as they build their digital literacy skills. Respond to your kids' concerns and questions along the way. In doing so, you can provide your kids with the help they need to thrive online and hit the ground running with tech-based investing.
3. Empower Your Children
Teach your children the basics of tech-based investing. Explain how it works and why it is important. Show your children apps and tools to use for tech-based investing as well.
When your children are old enough, let them make their first investments. Your kids can use apps and tools to weigh the pros and cons of different investments. Next, they can determine the best investment option.
Once a child makes an investment, track its results. You and your son or daughter can monitor the investment. Encourage your child to remain patient with their investment. Your child's investment may or may not deliver the desired result. Regardless, the investment provides a valuable learning experience that can serve your child well long into the future.
Get Started with Responsible Tech-Based Investing for Kids
Expect highs and lows with tech-based investing for kids. Stay on course with teaching your child about responsible tech-based investing. In the long run, your child can gain the skills and experience needed to become a savvy investor. Your son or daughter may even save enough money to launch an online business or achieve other long-term financial milestones.
Start teaching your kids about responsible tech-based investing. Once you do, you can put your children on the path to financial success.
