Teaching financial literacy to the next generation is vital, right? Right. So it’s a good idea to send your kid to investing camp or encourage them to play stock market games, right? Maybe.
At least according to Beth Kobliner, personal finance guru and author of Make Your Kid a Money Genius (Even if You’re Not). Her logic is two-fold:
- Camps and games often promote the idea that with some research, your kid can pick winners. And no offence, but well-paid and full-grown financial analysts do that for a living, and even they aren’t so great at it.
- These time-limited activities are all about quick wins, and “this approach contradicts the diversified, long-term investing strategy that will be more likely to succeed in the real world.”
Short-term thinking is exactly the opposite of financial literacy.
There’s no real harm in learning financial literacy in this way, of course. Just be sure that’s not your child’s only exposure to the world of investing.