REPEAT-BMO: It's Never Too Early to Teach Kids About the Basics of Investing

REPEAT-BMO: It's Never Too Early to Teach Kids About the Basics of Investing 
- Children as young as five can grasp basic financial concepts 
- Ongoing dialogue builds lifelong financial literacy 
- Talk With Our Kids About Money Day - CFEE program supported by BMO
provides resources for families and teachers to help youth better
understand money matters in their lives 
TORONTO, ONTARIO -- (Marketwired) -- 04/29/13 -- Following the
inaugural Canadian Foundation for Economic Education's (CFEE) Talk
With Our Kids About Money Day - a Canada-wide initiative designed to
help young Canadians learn more about money and personal finances -
BMO reminds parents that they can give their children a head-start on
investing and saving by introducing them to the world of finance at
an early age. 
"The sooner parents start talking to their kids about money, the
better prepared they will be when they start saving and investing for
their future," said Serge Pepin, Vice President, Investment Strategy,
BMO Asset Management. "Even very young children can benefit from
learning basic investing skills and the importance of setting
financial goals." 
Mr. Pepin noted that having the "money talk" has many benefits for
children, including: 


 
--  Building Wealth: Investing is one of the best ways to amass wealth,
    particularly over a long-term horizon. While many parents know this, it
    is important that they teach their children about investing and ways
    they can begin building their own wealth. 
--  Financial Freedom: By getting kids interested in investing, they learn
    lifelong financial skills that will help put them on a long-term path to
    financial independence. 
--  Skills Development: As children become more aware of money and other
    financial concepts, they become armed with important investment
    knowledge. This is especially beneficial when they begin investing on
    their own; for instance, they may be more comfortable riding out market
    fluctuations and making informed decisions when others may panic.

 
BMO offers the following tips to help parents open the discussion
about money and investing: 
Start Early: Give a young child a piggy bank and explain why people
save and why every nickel matters. When they start school, introduce
them to simple investment terms and discuss stock market basics. As
they mature, begin investing in real companies with real money and
discuss their progress together. 
Partner Up: As your child gets older, consider setting up a custodial
account and having him/her contribute part of their savings, and
perhaps offer to match any contributions the child makes. The act of
investing will help them learn how to make real decisions and take
real risks down the road.  
Make It a Habit: Continuous learning helps children digest
information more easily and lets them know that it is okay to talk
about money and finances. Build conversations about saving and
investing into daily interaction, such as during dinner or on the way
to school. 
Keep It Personal: Make the conversation age-specific and use examples
that resonate. For example:  


 
--  Ages 5 to 9 - Explain the difference between short- and long-term
    financial goals, and focus on a specific goal such as a buying a video
    game or a bicycle. Suggest they save part of the money they receive for
    birthdays, holidays or chores for something they really want. 
--  Ages 10 to 13 - Show them how to read stock prices in the financial
    pages of the newspaper or online, and have them track familiar companies
    such as Tim Hortons or Apple to make it more interesting and personal.
    Introduce concepts such as risk and balanced portfolios. 
--  Over 14 - Encourage teenagers to invest on their own, with parental
    support and guidance. Teach them how Registered Education Savings Plans,
    Registered Retirement Savings Plans and Tax-Free Savings Accounts can
    impact their future and emphasize the importance of starting to invest
    in these savings vehicles early on.

 
Talk With Our Kids About Money Day, launched on April 17th, 2013 in
schools in the Greater Toronto Area and Montreal, is an initiative of
CFEE in partnership with BMO Financial Group. Designed to help young
Canadians learn more about money and personal finances, Talk With Our
Kids About Money features a "Home Program" for families and a "School
Program" for students and teachers. The material provided is designed
to support provincial governments' desire to integrate financial
education into the curriculum and can be used by teachers throughout
the school year. The program will be rolled out to other provinces in
2014. 
For more information on Talk With Our Kids About Money, visit
www.talkwithourkidsaboutmoney.com or visit a BMO Bank of Montreal
branch. 
Get the latest BMO press releases via Twitter by following @BMOmedia.
Contacts:
Media Contacts:
Rachael McKay, Toronto
(416) 867-3996
Rachael.mckay@bmo.com 
Valerie Doucet, Montreal
(514) 877-8224
valerie.doucet@bmo.com 
Laurie Grant, Vancouver
(604) 665-7596
laurie.grant@bmo.com
 
 
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