Came down this morning to find wifey playing kids Monopoly with the little one.

Came down this morning to find wifey playing kids Monopoly with the little one.

I love that you can teach financial independence at any age so that they start to pay attention to the important things in life.

I’m not saying money is the most important of things, but it’s up there next to oxygen and love.

You know if you start investing in your 20’s, with a 7% annual return, that by the time you’re 65, it’s worth 21 times more.

So that car you bought for £10,000 in your 20’s was worth £210,000 by the time you’re 65.

That £100 handbag is worth £2,100 when you’re 65.

Literally every pound is worth £21.

Now obviously, you can’t invest EVERYTHING, you still have to survive, have fun and all the rest of it.

But people are creatures of extremes.

They either invest LOADS (like I did), or they invest not at all.

(Having said that, in my late 20’s I spent a lot on stuff I didn’t need – Porsche 911’s, £1,000 nights out and so on)

So a balance is needed.

It can start by cutting costs by £100 a month, and starting to put money into a Vanguard fund tgat follows the market via an ISA, or a SIPP for your pension for later on.

Either way – you gotta cut costs, move money into investments that pay you something back later, rather than costing you every year like cars and handbags do.

With my other 2 kids, at age 8 and 12, we played Cashflow 101 – and they GOT IT.

Hopefully some of those lessons will stay with them.

But the earlier they undertsand how money works, the greater the chance they won’t have a problem with it later on in life.

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Daniel Latto
 

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