The One Money Habit That Will Have Your Kid Thanking You When They Grow Up, According to Liz Claman

Core Insights - The article emphasizes the importance of teaching children to invest early, suggesting that an investment account should be considered a vital gift alongside roots and wings [1][2]. Group 1: Importance of Early Investment - Parents should encourage their children to invest rather than just save, as traditional savings accounts offer minimal interest [4][5]. - Opening an investment account for children and purchasing shares of the S&P 500 can provide significant long-term returns [5][6]. - This investment strategy is endorsed by renowned investor Warren Buffett, who believes it will yield great returns by the time children reach their 20s [6]. Group 2: Financial Education and Skills - Teaching kids to invest instills the value of delayed gratification, which is essential for effective money management [6]. - Patience is highlighted as a crucial skill that can be learned through the process of investing [6].