One of the skills I wish the most that I had learned as a child is healthy spending habits. To be fair, both of my parents attempted to teach me. What neither of them had was a budgeting method that was simple and workable for our modern world.
The best way to approach the topic is to engage your child in the pursuit of earning their own money. My dad was excellent at this. He had the means to buy whatever I asked for but instead of spoiling me by piling me with gifts, he gently guided me to find a way to earn it.
Another great way to encourage healthy spending habits is through play. Board games like Monopoly are great for this, and for younger children make-believe games like shopping for groceries can also help.
For teens, you can use apps such as Greenlight.
Understanding this easy equation will give you the ability to calculate your potential return on any investment. This truly is the basis of all investing!
A great tool for teaching this concept is the Investment Calculator.