Teach Your Kids How to Get a Bigger Piece of the Pie

Kids– with their jubilant stream of never-ending questions– provide us with endless opportunities for teachable moments. The ones that educate both them and us. What’s more many of them also lead to discussions that stick in their memories. So when you’re gathered around the dinner table and questions like “why are adults always talking about the economy?” and “how can I grow up and make a lot of money?” come up here’s how you proceed: Introduce them to the concept of investing and how it can lead to 1) financial independence and 2) wealth-building!

“You Can Grow Up to Be Whatever You Want”… Including Financially Secure!

It can be difficult to explain a complex concept like investing. However the “you can grow up to be whatever you want” adage furnishes us with an excellent opportunity. You can explain how this saying relates to investing, since the right type of investment(s) can help fund their dreams, whatever they may be. To further the conversation on how important early investing is we know a tactic that’s sure to make an impression. You just need a little help from a popular dessert.

Getting a Bigger Piece of the Pie

As many people (especially kids) are visual learners it makes sense to take advantage of it. Do this by incorporating an enticing prop into the financial lesson: pie! Yes pie. Once the dessert favorite has succeeded in gaining their attention tie it to investing with dialogue along these lines: “A college education gets you a career; that’s two pieces of pie. Working hard and getting promoted is a third slice;” but what if their sweet tooth persists? Tell them that the way for them to earn the biggest part of the pie is to become an investor.

Their hearts will be beating with anticipation (and their stomachs grumbling with hunger) by the time you get to the best part: How investing has the potential to make them rich. That’s a lot of dessert.

Financial Independence: As Sweet As It Gets

While they may be too young to understand the details that go into a good investment you can still explain what the different types of investments are. While stocks and bonds are two of the most common their volatility and diminishing returns have left a bitter taste in your mouth.

So point them toward a safer option: Real estate. By highlighting how this asset class has created many millionaires you’ll have their attention; just be sure not to paint too rosy a picture. Check their expectations by explaining how failing to perform due diligence and secure the right investment can lose them their pie .

A Belly Full of Knowledge

Once the power of investing sinks in your children will never look at the path to success the same way. What’s more, this conversation will get them planning for their future from an early age, putting them on the fast-track to the sweetest future of all: Financial independence.

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