Cultivate Interest in Investing among children, says JN exec Loop Jamaica

The content originally appeared on: Jamaica News Loop News

Instilling sound financial habits in children from a young age is essential for their long-term success, said Delories Jones, senior vice-president for sales and marketing at JN Fund Managers.

Jones further added that it is essential to equip children with the tools they need for a financially savvy future and has outlined a series of practical tips for parents to cultivate an interest in investing among their kids.

She gave the advice in observation of May being Child’s Month.

The JN Fund Managers senior vice president said that the first step is to introduce children to fundamental financial concepts such as saving, budgeting, and the significance of investing.

“Utilise relatable examples and age-appropriate language to make these concepts easily understandable,” she recommended.

She further noted that leading by example was critical. “Children often learn by observing their parents’ behaviour. Demonstrate responsible financial habits by showcasing how you manage your finances, including saving, investing, and making informed financial decisions,” she advised.

Jones pointed out that a conversation about investment can be a heavy discussion for a child, but parents should try to make it fun by transforming learning about investment into an enjoyable and engaging activity.  She said this could be done by incorporating games, interactive tools, and apps designed to teach children about money management and investing in a fun and accessible manner.

She also recommended using real life examples so children can grasp the concept of investing. This, she said, is done by discussing familiar companies and products, and showing how investing in these companies can yield financial returns.

“Offer children the chance to invest real money, by setting up a custodial brokerage account in their name. Start with small amounts and guide them in making investment decisions,” she recommended.

She encouraged parents to reward children when they have demonstrated financial responsibility. She said that by rewarding children for showing prudent money management, behaviours such as saving a portion of their allowance or making wise spending decisions, will motivate them.

“Teach children about the benefits of long-term investing and the power of compounding. Emphasise the importance of starting early and making regular contributions to their investments,” she added.

Jones informed that children should be engaged to ask questions and that parents should foster an environment where children feel comfortable asking questions about investing. “Be patient in answering their inquiries and help them explore different investment options to satisfy their curiosity,” she said.

She encouraged parents to take advantage of educational resources tailored for children and teens to learn about investing. Books, videos, and online courses can make learning about finance enjoyable and engaging for kids, she stated.