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How to make your child money savvy

June 30, 2008

The world's richest man has one regret. In a recent interview, Warren Buffet, 77, revealed that he bought his first share when he was 11 and rued the fact that he hadn't started earlier.

Currently on top of the Forbes billionaire list and considered one of the best investors ever, he validates the early-bird theory. Starting early makes sense.

Quiz: Test your IQ

"The earlier they start, the longer will be their investing careers and the greater their wealth creation," says Naresh Pachisia, managing director, SKP Secu-rities, a Kolkata-based brokerage and wealth management firm.

A helpful guide: Pathway to Investing

His younger son Vaibhav, 13, and a class VIII student, made his first investment on 22 January this year, the day the markets started tumbling. Alongside AXN and National Geographic, he follows NDTV Profit as well.

Hands-on initiation is the best way to start, agree financial planners. "Till the age of around 22, the child only spends money. After that, he starts earning, but he is not taught to manage money," points out Gaurav Mashruwala, a Mumbai-based financial planner. "Just like bicycling, you can learn about investing only by doing it, and by improving along the way."

Text: Anagh Pal

Image:A child from St Patrick?s Academy takes part in an independence celebration ceremony | Photograph: Diptendu Dutta/AFP/Getty Images

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