Parents, you’ve got questions, we’ve got answers.

Or just as likely, we’ve got questions and you’ve got answers.

Challenge: Open Discussion

Learning Young About Investments

0
Vote up!
Share on Facebook Share on Twitter Email this article

One of the greatest lessons anyone can learn is the ability to appreciate fiscal responsibility. This is true for adults and children alike but it is highly important for people to learn these lessons in their early years so that potential financial pitfalls can be avoided down the road.

We need only think back a few years to the economic crisis of 2008 to remember the ways that irresponsible lending and borrowing can create much more substantial problems for everyone involved.

Over time and throughout history, some of the best investment decisions have been tied to the value of gold and silver. These assets are part of the ‘precious metals complex’ and they have managed to hold their value in times of great economic turmoil as a protective safe haven investment.

This is why gold and silver actually posted strong rallies during the 2008 global economic collapse, and if you had your money stored in these types of investments you actually would have made a great deal of money while the rest of the market panicked.

Modern Gold Investing in the Digital Age

Of course, the financial markets are changing every day, and these modernizations have made it much easier to learn about the proper ways to invest. One innovative website is Atlanta Gold & Coin, which actually allows investors to sell gold coins online through the mail. This is a very convenient way of conducting business and it ultimately ensures that you are always receiving the best possible prices whenever you are looking to buy or sell gold and silver items.

We can actually see the ways that the price of gold has changed over time within the financial markets:

Screenshot 2017-11-13 at 11.49.53 PM.png

Rising inflation in the 1970s made gold a highly attractive asset, as many US consumers were concerned about purchasing power and their ability to buy household goods. It is important to understand some of the key economic factors that affect gold prices, as this can allow you to better know when it is a good time to buy or sell gold coins and other precious metals assets.

It is important to know that precious metals have a strong relationship with the US Dollar, and these assets are often used as a means of protection against potential increases in inflation. In all actuality, gold is typically priced in US Dollars even when people in other countries are buying and selling gold coins or gold bars. For young investors, this is important because it suggests that we should always have a sense of the value of the Dollar any time we are looking to start investing in other markets.

Overall, these are all lessons that parents can teach their children in order to learn about money savings and planning for retirement. It might seem as though this is many years away (especially if your children are young). But, we are never too young to start planning for the future -- and everyone needs stable savings in order to retain a comfortable life into our later years. Gold and silver can go a long way to helping us achieve these goals, so it is good to start planning now and choosing which assets you should be buying over time.

This post comes from the TODAY Parenting Team community, where all members are welcome to post and discuss parenting solutions. Learn more and join us! Because we're all in this together.