My daughter is just 18 months old - and yet she has received another dividend from the FTSE All-World ($VWRL (+0,28%)) again:
💵 0.36 per share for a total of 93.97 shares
This may only seem like a small amount at first glance, but for me there is a big message in it:
➡️ Long-term investing is best started as early as possible.
Children have the biggest advantage you can have in the stock market: Time.
Even the smallest amount invested today can have a big impact in 15-20 years through compound interest.
I think it makes incredible sense for children to invest regularly in broadly diversified ETFs such as the FTSE All-World.
This teaches them (later) quite automatically that money can work - and that wealth accumulation has nothing to do with luck, but with planning and patience. 🌍📊
💡 Why a distributing ETF makes sense for children:
A distributing ETF pays out dividends regularly - and this is exactly what can be a great teaching tool.
In this way, the child (or later the young person) sees the income generated by their own investment directly.
These dividends can then be reinvested, making the compound interest effect even stronger, or used for small goals - both of which provide a realistic understanding of how passive income works.💵🔁
Especially at the beginning, it is motivating to see that your portfolio is "working", even if the amounts are small. 🌱
💡 And financial education is just as important as investing itself.
If we as parents don't show our children how money works, no one else will either.
School, training or university hardly impart any knowledge about saving, investing or handling money.
That's why it's even more important to exemplify and pass on financial knowledge at home - so that our children can handle money confidently and responsibly later on. 💬📚
How do you handle this? Have you also set up a deposit for your children or grandchildren? How do you plan to teach them financial education at an early age? 👶
#etfs
#dividend
#finanzbildung
#juniordepot
#zinseszins
#vermögensaufbau
