3 Ways to Give THR to Children So that They Become Warren Buffett in the Future

Jakarta, Armfalcon.com – Giving a Holiday Allowance (THR) in the form of cash to children, of course, is normal, in the end the money will go into a piggy bank or bank savings. But make no mistake, there are other forms of THR that can make your little one more investment literate. Teaching investment from an early age is certainly very beneficial, one of the richest people in the world, Warren Buffet, for example, has started investing since he was 11 years old.

As is known, financial planning and investment are things that have never been taught in school. It is important for you as a parent to teach your child this one thing, because in the future there will be many challenges that will arise both in matters of career, business, and so on.

Even though it is not easy to teach small children about investing, by introducing them from an early age to investment instruments, it will make them more curious about the purpose of investing activities. With this, it is hoped that in the future he can make investing part of his habit or lifestyle.

So what are the non-cash THR that can be given to your little one? Here’s the review.

Thematic precious metals

There are quite a few thematic precious metals circulating in the market that are suitable for gifts to your little one. These precious metals generally have packaging depicting Mickey Mouse, Hello Kitty, and other cartoon characters.

Generally, this precious metal is in the form of gold coins which come in sizes starting from 0.1 gram. Of course, the price of this coin is cheaper than 1 gram of gold bars.

This THR in the form of thematic precious metals is certainly an initial means to introduce children to gold investment slowly. Gradually, when he grows up, you can also introduce gold bars and gold savings to him.

Share

It is not impossible to give shares as THR gifts to children. Even though this instrument is classified as a high-risk investment instrument, there is nothing wrong with introducing stocks to children as early as possible.

Giving shares to children is certainly clear evidence that you as a parent have prepared a productive future for your child.

You can tell him that by owning the shares, he is already the owner of the company. It could be, there will be pride for your little one when he tells his siblings about this.

So what stocks should you buy for him? Of course, these are bluechip stocks or large companies with good fundamentals, which pay dividends regularly.

Mutual funds

Apart from gold or stocks, mutual funds can also be THR gifts as long as you can make the child understand what mutual funds mean.

Unlike stocks and gold, mutual funds are investment vehicles that are used to raise investor funds which will later be reinvested in several assets. Call it money market assets, bonds, or stocks.

Although mutual fund investment is often said to be more practical, explaining mutual funds to children can be more complicated. Before explaining mutual funds, you must first explain what the money market is, bonds or debentures, and stocks to children.

[Gambas:Video CNBC]

(aak/aak)