We know a father who had the bright idea of introducing his two sons to the stock market. The kids’ ages? About 12. Oh, that’s so young, you think! But the father knew exactly what he was doing.
The two sons were paperboys for years. The father said: “Give me part of your savings, and I’ll explain the selection criteria for companies. We’ll make choices together. If you make a profit, you keep it. If you lose money, I’ll reimburse you.” The two sons had made a tidy sum of money by the time their dad told us the story. And that doesn’t include the priceless knowledge that they acquired.
Can we teach children that young about how mortgages work? Yes, says author Gail Vaz-Oxlade, although the ideal age is around 14. As soon as a child shows an interest in owning a property in the future is the time to take action. Make the learning process like a game: You become the lender and your child becomes the future owner. Continue reading