How do you give older children a reason to continue investing?

It’s simple. Targets.

By the time your teenager has outgrown the lure of movie-linked merchandise on every surface of their bedroom, it’s time to look at earning money outside the home. Working at a DVD store, waitressing, lifeguarding, and babysitting are a means to earning more than when they were feeding the dogs every night. By now, that savings account might have a healthy balance, which will begin to look even healthier if it’s boosted by that pay packet every week.

At this point, you can illustrate the value of investing in unit trusts – if you haven’t already started one with the lovely cash gifts that came along when they were born! (If that never happened? Well, here’s where you could introduce a brand-new family tradition of giving investment money as birth gifts.) Point those teenagers towards stories about ordinary kids who became extraordinarily wealthy – like Warren Buffet – just by investing cleverly from an early age. Many young people have dreams of being entrepreneurs, but they simply don’t do anything about it other than stare in envy at publicity pics of the newest rich-guy-got-lucky. Becoming wealthy is a bit like fishing: if there’s no bait on your hook, there will be no fish landing at your feet. Consider action as bait!

If the reward system worked during their early years, they will latch onto having money targets fairly easily. However, if they – and you – are new to the idea of teenage investment, then creating a goal-oriented savings plan could be an interesting challenge on every level. Imagine having enough money for a deposit on that first car?

It’s time that South African investment companies and the big banks take a good look at attractive investment models for youth. Otherwise, a culture of being given handouts, or being handed everything on a plate, will persist into adulthood. And nobody wins in that game.