You’ve probably heard it before, the earlier you start investing, the better! This principle holds true not only for adults but also for children. By introducing your kids to the concept of investing from a young age, you have the opportunity to set them on a path towards a very healthy financial future. 

That’s why we recently introduced the APS Kids Club, an initiative designed to help children learn about investing and benefit from it over a long period of time. The APS team wanted to provide a way to help you support young kids in building financial literacy from a young age and encouraging positive financial well-being.

What are the benefits of getting your kids into the world of investing from a young age?

Investing cultivates a smart money mindset

Introducing children to the concept of investing helps to instil a sense of financial responsibility and encourages them to develop healthy money management habits from a young age. By teaching your kids about the value of saving and investing, you can foster a mindset that goes beyond immediate gratification. They will be able to appreciate a long-term perspective on wealth creation, to set themselves up for a stable future. 

Your kids will learn about the power of compound interest from an early age

Compound interest is a phenomenon where the interest earned on an investment is reinvested, leading to exponential growth over time. The earlier you and your children start investing, the more time their investments have to compound and grow significantly, which is why starting earlier is always better. Even small contributions made during childhood can accumulate into substantial wealth by the time they reach adulthood.

Learning about long-term goal setting will set your kids up for a secure financial future

Investing fosters the development of long-term goal-setting skills in children. They learn the difference between what they can save for in the short term vs the long term. When identifying their long-term financial aspirations, they will stand to understand how important it is to think about the big picture when saving for the important things in life. By setting clear investment goals and creating a plan to achieve them, children will begin to understand the value of patience, perseverance, and consistency.

Investing promotes financial independence 

Starting to invest at a young age empowers children to become financially independent in the future. As their investments grow, they gain a sense of ownership over their financial well-being. By learning to manage their investments and making informed decisions, they become more confident and self-reliant when it comes to their finances.

The earlier the better!

Starting to invest at a young age can have a profound impact on your child’s financial future. Investing supports a positive money mindset, teaches them about long-term goal setting, allows them to learn more about money and compound interest, and allows for financial independence. As parents or grandparents, you have the opportunity to empower your little ones by providing them with knowledge, resources, and guidance.

If you are ready to introduce your young family to the world of investing, the best place to start is the APS Kids Club. When your kids or grandkids join the APS Kids Club, they will be earning 4.25% p.a. on their investment. They will be able to watch their investment grow over time, and you can help boost it further by contributing a small amount regularly. Kids Club accounts aren’t fixed investments, meaning you can withdraw whenever you are ready, just give us 31 days’ notice to withdraw.

Learn more about the APS Kids Club.