Comment

Don't teach your kids about investing

By Wang Ru (China Daily)
Updated: 2009-12-18 09:20

More than 2,000 years ago, Confucius said family and family values are the most important things for children to learn and understand. More than 200 years ago, another great philosopher, Jean-Jacques Rousseau said the principal of education is not to teach children with particular techniques of imparting information and concepts, but to develop their character and moral sense.

But they never commented on the value of teaching children about investment. And I bet if they were alive now, they would not encourage the practice. But many parents and people in the media don't agree. Instead, they encourage children to start investing while still in school.

I was recently concerned by two media reports. One was a story about a freshman in Beijing talking about how his dealings in the real estate market turned him into an 18-year-old multi-millionaire.

The second was a so-called investment expert advocating that parents talk to their children about finance and investment concepts as early as age 9. The expert said he planned to teach his son about investment in stock market from age 12.

But I don't think this is a good idea. I agree children should understand the meaning of money and wealth, but please do not confuse this as meaning investment in the stock and real estate market.

Financial investment is perhaps the most complex and tricky of all knowledge in human society. Investment often conveys messages of greed.

We should let our children understand that personal wealth steams from hard work and determination. This is a rejection of the "easy money"

message inherent in investment and contains a message of honesty and responsibility.

Let our children realize that life is an investment, and there are many things to learn, including health, love and friendship.

So, don't hurry your children to learn about financial investment. One of them could be the next Warren Buffet, but they should learn to be righteous people first.