Malta’s Kids: The Next Generation of Investors

Imagine a 10-year-old Maltese boy, sitting on the steps of the Grandmaster’s Palace in Valletta, counting his weekly pocket money. What if we told you, he could be on his way to becoming Malta’s next millionaire? Sounds far-fetched? Not according to local financial educators who are teaching kids as young as five about the power of compound interest.

Meet Daniel Azzopardi, a 35-year-old finance whizz from Birkirkara who’s on a mission to make financial literacy as common as learning to read and write. His initiative, ‘MoneySmart Kids’, is teaching children across Malta , investing, and understanding money. “We’re not just giving them fish,” he says, “we’re teaching them how to fish.”

Daniel’s classes, held in schools and community centres like the St. Joseph’s Home in Msida, use interactive games and real-life scenarios to make learning about money fun and engaging. Kids learn about budgeting, saving, and even the basics of investing in stocks and bonds. “We want to give them a head start,” says Daniel, “so they can start saving and investing early, taking advantage of the power of compound interest.”

Daniel isn’t alone in his quest. The Malta Financial Services Authority (MFSA) has been actively promoting financial literacy, with initiatives like their ‘MoneySense’ programme, targeting students aged 7 to 17. The programme, delivered in partnership with the Ministry of Education, aims to equip students with the skills to make informed financial decisions.

Locally, banks like HSBC and Bank of Valletta have also been stepping up, offering financial education workshops and resources for both children and adults. HSBC’s ‘MoneyTree’ app, for instance, teaches kids about saving, spending, and sharing through interactive games.

So, what about our 10-year-old in Valletta? Let’s say he starts saving €10 a week from age 10, investing it in a low-cost index fund with an average annual return of 7%. By the time he’s 65, he could have a portfolio worth over €500,000. Not bad for pocket money!

But it’s not just about the money. It’s about empowering our children to take control of their financial future. As Daniel puts it, “We’re not just teaching them how to make money, we’re teaching them how to make money work for them.”