I have a niece and two nephews (all under 3) that are pretty bright and already starting to understand the basics of money, negotiating, saving, etc. I’d like to start teaching them about investing, charity, and other areas of finance, but most of the resources I’ve found seem to be aimed at older children. Can anyone recommend any books, games, etc for younger kids? I was mainly self taught in my teens, but want to give them a head start so they have an easier time. They are obviously too young for things like mock portfolios, but I’d like to teach them at least the core concepts.
Investing a complicated topic that a 3yr old will not understand. They have enough problems understanding object permanence, never mind investing in a stock market! I think you can be patience, 8-9yr olds will have a better chance at grasping the nuances of investing.
I started trust accounts for my boys at 3 and 6 years old. At first they had no interest until one day my now 10 year old said he wanted an I phone, I told him he should have one because he owns the company. Also told them they own the cool hip EV company and the company with the blue vans that drop stuff off on porches. It just clicked and now every time we see a TESLA or a blue van they tell me they are making money. Never to early to plant the seed with some water and you'll be surprised when it sprouts. Happy Investing!
A couple small things we've found successful with our oldest, who will be 5 in September. Our youngest will be 2 in March, so not quite there yet obviously. "Savings": Whenever we have a treat, we let our oldest choose between having it all now vs. a little now & a little later. We found at first, our oldest wanted it all now (shocking, I know!) but then would ask for more later. This gave us an opportunity to talk about the difference...and over time, we're finding that our oldest more often than not will take a little upfront, and save the rest for later. "Charity": Whenever we clean out old or less 'loved' toys (or really get rid of anything we no longer want them to have), we always talk about how we are giving those toys/things to others who do not have them. In truth, sometimes we really are just throwing them away -- but since they don't know that, it provides just an opportunity to talk about it. Again over time, our oldest has started to give things to us to pass on to others...it's sweet!
Both great ideas. Your first point reminded me of that Mischel psychology experiment with the marshmallows! I think my brother and sister-in-law take that approach with teaching my nephews about charity. It's brilliant that you're encouraging them to share what they have with others at a young age. I bought all three of them money boxes to encourage saving and my eldest nephew loves going to the bank and paying in his money like a grown-up! The other two are a bit young right now, but my neice understands the concept of delaying gratification to get better rewards and has started enthusiastically bargaining with me! I might start letting her pick some of my things to give away, just to get her used to the idea.