Investment is a very significant part of every kid’s life as this will help position them for the uncertainties ahead, what is the best option trading strategy ?
In planning for the kid or as a kid you need to recognize the need to “have”, as a very essential part of your life, because when you “lack” you become vulnerable to vices that could possibly ruin you life and the life of the society at large. The first step you need to take in investing, is Planning, but then what do you plan for and how do you go about it.
The parent is the most important element in every kid’s investment decision, because he or she is well experienced and exposed in the intricacies of the world and should be in a better position to ascertain the talent of the kid. It is more rewarding to channel a kid’s investment culture towards his or her talent than towards a general view of life.
In identifying the talent of the kid, the parent should analyze the kids SWOT potential. The SWOT, analysis recognizes the kid’s Strengths, Weaknesses, Opportunities and Threats. The weaknesses could be kept aside while a concentration on the kid’s strengths, opportunities and threats is done. The strengths should be aligned with the opportunities that abound around the kid while the threats, which are of course the risks surrounding the kid are considered critically and alternative solutions put in place, should the threats occur.
The parent as the determining factor should inculcate in the kid the habit of saving and having a little extra, always. The kid should be carried along in decisions regarding saving and investment because as some contemporary economics will say “there’s no saving without investment, investment depends on saving, one cannot invest when one has no savings”. These words should always ring a bell in the mind of the kid. Again, the parent should follow up on the kid’s saving culture, how effective the kid abides by the rules and ensures that he or she keeps a little extra from every leftover.
Kids should be taught to avoid wastage of any form or manner. Even at their tender age, they should be taught to buy and ask for only what the need so as to avoid waste and have a little to save and invest. Every kid loves to waste, you buy them cookies and behold! There, they are lying waste, they could be put in the fridge or properly can to be enjoyed later, that’s what they need to know. And when they begin to appreciate the act of keeping safe, they also begin to like the habit of saving.
It is practically not a bad idea to teach the kid the virtue of patience in investment, exemplifying the lives of Bill Gates, Warren Buffet, who where patient enough to wait until the got it. Bill pursued his career, patiently innovating and trying out something new, every now and then until he founded Microsoft, and Warren bought shares and stocks, waited for maturity, to reap. So your kid should know of companies and shares, investments in deficit units that are ready to pay capital plus cost of capital, savings, they should also learn to pursue their dreams, so they can reap maximum benefits from their talents like Bill.