Many families are aware of the importance of early financial investment education.

Once, you asked Emmanuel Rodriguez why there was no Nintendo console yet. The 7-year-old says he owns something better: Nintendo stock.

The friend stared incredulously, but it was true. The boy holds Nintendo shares worth about $178. Emmanuel’s father, Sebastian Rodriguez, said: “This is part of my plan to teach my children how to make smart money for pocket money.”

Sebastian’s family is not alone. Many American parents are using trading platforms to introduce their children to the markets. Some adults report getting bored with the subject as children and having to make financial decisions that they regret. So they want to help their children avoid the same mistake by teaching them to invest, at least $5 at a time, even encouraging them to invest in difficult times.

These families also help to reverse inequality in many of the world’s richest countries, where 1% of households in the affluent quintile control more than a third of wealth.

Investing is the key to increasing wealth. However, only 56% of US adults own stocks. Among families earning less than $40,000 a year, the rate is 24%.

“I didn’t know anything about investing until I was 20. I always thought it was something for the elite,” said Janice Laset-Parkerson, a mother who lives in suburban Portland, Oregon. When she has kids, she wants to teach them “investing isn’t scary”.

There is some evidence that many families are aware of the importance of early financial investment education. On Public.com, an investment platform that allows users to buy retail stocks, posts on family topics – including how to teach kids about stocks – have nearly doubled in the past month.

The unit says the number of subscribers on Learn & Earn, an app that rewards students for completing a course with market-invested cash, is up 176% since May. And many parents are discussing it. Discuss on Reddit how to explain dividend-related concepts to kids.

For Chris Kloch, who lives near Buffalo, New York, it’s a way to give his children the head start they don’t have. Every Sunday, he sits with his two youngest children, Alexander and Juliette, discussing buying $5 shares in a company they know.

The kids’ choice is a pet food retailer and toy giant Mattel Inc. From the age of 6, Juliette wanted to be a veterinarian.

“As soon as we did, my son said ‘they’re going to send us toy cars because they own part of the company? I said ‘No, it’s not like that,'” the father said.

The Klochs also own shares of Super League Gaming. When stocks plummeted earlier this year, the father had the opportunity to discuss with his son the changing market conditions and the concept of “bottom fishing”. (buying a stock after the market or the stock has had a strong downtrend with the expectation that it will rise again and have a high discount)

“People sell it because they don’t have a long-term goal. But we want to hold that stock for 10 years,” Kloch explains to his children. The good news is that their stock is up more than 37% since the start of the year.

Emmanuel’s parents are trying to teach their children more than just spending money. Recently, the boy split $5 to buy a Starbucks ice cream cake and invested a little in the company’s stock. “Of course, this small investment won’t make him rich. My aim is to help him see that patience can pay off and money can grow,” the boy’s father said.

But Laset-Parkerson, a mother in Oregon, said that teaching children to sit still and get rewarded is not an easy task.

One day, while sitting in the car, her daughter Fiona argued with her mother with her insightful observations. “Mom, you say investing doesn’t have to do anything. You say it’s easy. But you have to wait and it’s hard,” the little girl said.

Mac Gardner, a financial planner and author of the children’s book “The Four Money Bears,” says that children with such wisdom demonstrate that they can acquire the lessons and Early financial habits. This shows the importance of early financial education.

In his book “The Four Money Bears”, he introduces the four functions of money through the main characters: Spender Bear, Saver Bear, Investor Bear, and Giver Bear. benevolent). “There was a boy who said he wanted a Maserati when he grew up, which means he has to be an Investor Bear’. Prove the child understands,” he said.

Emmanuel’s parents already knew that. Their son can make adults jealous when he stands firm in the face of stormy financial

When his mother, Jenny Rodriguez, said that one of her sister’s stocks had lost value, the boy advised her not to think too much. “Mom, you don’t have to be sad. That’s called the market,” the seven-year-old said, just like his father taught him.

- worldnews52.com