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Halloween: The trick to your treats

Here at Rosecut, we demonstrate how you can teach your kids to save through the basics of compounding as a fun game with their freshly collected trick-or-treat spoils. Not so scary now...

Halloween: The trick to your treats

Halloween 2019 at Rosecut

Investing, like Halloween, can be scary. It can be as complicated as carving a pumpkin, if you do not have the right tools and experience to work with.

But even the basics of finance can be tricky at times. Research shows that around 80% of parents want to start early and teach their children about finance but how can you avoid spooking them entirely?

Halloween has become one of the most exciting days of the year for kids. Dressing up as ghosts and goblins before collecting bags of sweet goodies around the neighbourhood and scaring each other senseless - what’s not to enjoy?

The challenge for parents on Halloween though, is making sure the kids don’t eat too many sweets and get sick. This is especially true if, like this year, Halloween falls on a school night.

On this spooky day, you can use trick-or-treating to start a game, which will help them understand some of the basics of saving and investing.

The below graphic is designed to help you work with your kids on a 5-day savings programme. But like the kids, if you don’t confront your fears with investing and get out there to knock on some doors, you’ll never reap the rewards of your own treats.

Try this fun game with your children and teach them the importance of saving through compounding.


The process of saving and reinvesting these sweets over the week teaches the kids about the magical principle of compounding and how it may work for you, or against you.

It not only applies to the interest (albeit tiny these days) which you earn on your savings, and the return you get on your investment portfolios, but also to your mortgage rate and monthly payment, and ever-growing credit card debt if you don’t pay off the money you owe in time.

When it works for you, it means your money will generate more money, at an exponential rate. It is as if a pair of black witches’ cats have a litter of kittens, and those kittens have more kittens, and it continues like that. So you start with £100k consistently invested since your 20s and voilà! You get £1million in your pocket by the time you are in your 50s...as if by magic.

When it works against you, you better make sure that the compound rate, defined as a percentage of the amount of money you borrow, is not too high. At least not higher than the potential return on investment or interest on deposit. A fixed rate mortgage with say 2% interest rate is reasonable, otherwise it can act like a hole in your cauldron and cause your cash, or assets, to slowly leak out.

The good news is that brilliant investment managers, such as Rosecut, exist to help you grow your capital and get compound magic to work for you, so you can then just sit back and enjoy all the treats you have built up.



About Rosecut

Rosecut is a digital wealth manager that shows you your future net worth with one tap, and how to invest to get there. We use expert knowledge and artificial intelligence to truly understand you, and build a bespoke financial plan and investment strategy for you.