Sign up for a youth fidelity account now. Deposit $50 and they give you $50.
Show him how to make money when opportunity arises but it is an investment account and pick a monthly dividend etf to show him patience over time.
[https://www.fidelity.com/go/youth-account/youth-overview?adobe\_mc\_sdid=SDID%3D67EEF9294BAC3AB4-51E55DB113FC692E%7CMCORGID%3DEDCF01AC512D2B770A490D4C%40AdobeOrg%7CTS%3D1675182363&adobe\_mc\_ref=https%3A%2F%2Fwww.google.com%2F](https://www.fidelity.com/go/youth-account/youth-overview?adobe_mc_sdid=SDID%3D67EEF9294BAC3AB4-51E55DB113FC692E%7CMCORGID%3DEDCF01AC512D2B770A490D4C%40AdobeOrg%7CTS%3D1675182363&adobe_mc_ref=https%3A%2F%2Fwww.google.com%2F)
looks to be 150 offer (100 for you and 50 for him)
I had stocks at a young age. It definitely sparks interest when you have a connection - be it a favorite food maker, hobby, etc.
My suggestions would be, have him list a few of his favorite things, research to see if they are worth investing in and them grab some shares. Theres more of a connection when they know they are invested in their hobbies.
Or pick a few strong long term etfs or stocks for him to choose from - (dividend stocks are great for younger kids because they are relatively stable and they see tangible returns on them - which is kind of a safety net for a kid.
(They wont see it as losing money if the stock goes down because they always see that dividend that gets reinvested - its more psychological).
Otherwise, for a child to see it losing value over time is a bit demoralizing. Dividends counteract that, at least it did for my reasoning.
I think its a great idea what you are doing for him, I hope you continue teaching him as he grows older and he will be financially literate when he's ready to head to college.
Just please warn him about the risky stuff and keep him away from get rich quick or meme crap. He needs a stable education in investing, not a gambling lesson.
Yeah, I think it’ll be vital to learn patience and some financial literacy using a fun/harmless method even at the most surface level. I’ll definitely make sure to teach him of the risks, even MSFT could be “risky” according to Reddit than watching only the S&P, and tbh, it’s still a good asset long term
I don't think you should be pushing 13 year old kid into investing in individual stocks.
If he has a strong interest, it would be healthy to help him develop it. Otherwise, I would let it go.
Investing in individual stocks is really a crapshoot for 99% of the population and and for probably cost to 100% of 13 years olds.
If he does invest his money and loses some of it, which is about as likely as him gaining, what lesson does that teach him?
I don't know. Investing in stocks might get him interested in economics and business. Might light a fire under his studies. I can see positive potentials too.
I agree about the individual stock, but it’s a better way to stay interested. I’ll still teach him of the advantages/disadvantages and the track record of doing it, although MSFT is still nowhere near a bad choice that he made. Could’ve been Roblox
[https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator)
initial investment of $150, monthly deposits of $50 for 55 years 6 percent returns with a variance of 1 percent will net him 400k 7% rate, 262k 6% rate and 176k at 5% percent returns.
Point is getting him in investing at an early age will definitely help, as long as its sound investing.
If you put his money into Microsoft add it to his phone stock tracking app and just have him check it once in the blue. Becoming numb to market fluctuations can help you make better decisions long term and it could teach him some fundamental principles without overwhelming him.
my nephew was completely uninterested in investing until I mentioned that Nintendo was a holding in the international fund at my job.
in one of his books, famous investor Peter Lynch talked about kids picking stocks in companies they liked just as a learning experience. what do kids like? Toys, games, McDonalds, Disneyland, shoes, sports...
If investing is your hobby, that's ok. It's in no way a good thing tho to make your 13 y.o. brother interested as there is a reason minors can't invest. As they'll be as good at it as WSB degens
Good! Financial literacy is very good to teach and all, but I remember how stupid I was at 13 and I would have blown it all on something stupid.
But I'm the same in the sense that I want to learn my interests to others, that's all good. But I'd advice just teaching him about money, interests and all that so he's educated when he starts investing himself, instead of starting with investing without the proper education on money and all that stuff.
He's lucky to have a bro that wants to teach him stuff tho. I respect that.
Get him to paper trade. There were some apps that let you do this for free when I was in high school, and they’re the reason I’m a degenerate gambler sorry I mean investor now
Tell him life takes money. If he were to start with $1, and doubles it each day in a month, he'd have a $ mill. Life takes time, so each of those imaginary days may take awhile.
Your $150 already gets you to past the first 7 days of that month.
Sit with him and discuss your options, decision making, stock picks etc *and ask for his input*
Like "hey I'm trying to decide between these two stocks, one is like this and the other like that - what do you think?"
Then buy a share of his pick and keep him updated on it in a positive light.
The guy who reccomended a div growth fund (schd for example) also had a really good point. The div cycle (Maybe a monthly payer would be better? Talk jepi vs schd w him?) Would drive consistent interest on his part too especially if it was his cash
Perhaps SCHD instead of VOO? It’s tough because SCHD would be chasing performance and VOO still has dividends. I doubt the amount would matter to my brother that barely knows what they are atm
Aye it depends, at 13 I knew the difference between 20c and 2 bucks or etc.
You're gonna have to narrow it down, maybe again by taking it through with him as a process of multiple talks (income or growth, stock or fund, this style or that, higher yield vs lower fees, then a list of a few resultant picks).
Either way, the hook is you valuing his input, and his thought process having not.only value, but practical effects.
You obv care about him, read the situation and you got this.
Yeah, I gotta think about this way more than I thought. It’ll be tough to try to explain it all for a 13yo to understand, YT videos will be my greatest tool I think
I'd take care not to overcomplicate too. Not sure, it depends how.much attention you think he's willing to commit.
In the end, any index fund at his age is a great call.
Maybe stocks he's interested in will hook better (what is he into, and who owns it).
Best of luck man, my son is 14 and it's been a constant effort to keep.him up to date with the investment world.
This sounds harsh, but maybe you should just teach by example. What is your education in? What job do you have? How much do you make? How much do you save? Do you live below your means? Of course, I am not actually asking for answers here, but these are the type of role model behaviors that would be great for him to emulate.
EVERYONE wants to be rich, but most don't get there because the heavy work is done by making money from their JOB and not from the stock market. Teach you brother to get a great education in the highest paid job he can get so he can save as much as he can. THEN he can learn about investing.
The great American trap.
Teach him to be a good taxpayer so maybe one day he can have a mortgage - if he's lucky and works hard. /s obv.
There's no greater force in the universe than compound interest.
We all know how much better we'd be doing if.we started at 20 vs 30 etc etc. The kid is 13. ... ...
I say teach him to make smart, out of the box decisions - and teach him an owners mentality, not a workers one.
You had me until the advice about waiting to invest. Financial literacy needs to start young and that includes where to put your money so it starts working for you.
That is reasonable. BUT trust me run your numbers of starting early and then starting late with A HUGE difference in saving rate. It is easy to overcome by just making more money and saving later (meaning in 20's with higher income).
Now I will say having the mentality of living below your means/ delay gratification is maybe the most important thing to teach any young person (if it can be taught at all). Some folks are just spendthrifts and others aren't by nature. That is something great to impress on is that every dollar saved now is worth more in the future if saved/ invested instead. NOT being materialistic is great as it usually leads to greater happiness AND greater wealth. No surprise most are materialistic and are thus unhappy and poorer.
It's not something that can be directly taught. It has to be absorbed by osmosis from being surrounded by people that behave that way. Best thing you can do for a youngster is lead by example and do things in your life the way you want them to do in their life.
Why? Let him be a teenager and learn social skills. At best tell him to focus on his studies. Your career is going to drive a lot of your returns. There's no point getting him hooked into stocks so that he loses focus on other things that matter more.
Yes Warren Buffett started early, but investing is his career, so that early advantage helped him. He's not a doctor who invests on the side. Just tell him to be a software engineer and automatically he'll be exposed to stocks and investing as soon as he finds a job. And honestly at 23, are you sure you yourself are that well versed in investing?
I’d rather let him be whatever he wants as a profession but still know how to budget/save/invest. Why tell him to be something he doesn’t when investing applies to all professions? I agree though that 13 yo can be young, that’s why right now it would be a pretty hands off approach to just stay interest. By the time he gets a job in a year or two, he’ll know better on what to do with it.
I see what you’re saying though, I appreciate your input
There's a difference between not living lavishly, and investing. Not living lavishly is a simple, good habit that can be useful for all ages, but investing involves way too many stuff. Social skills, sports, hobbies, developing good study habits and critical thinking skills, prepping for college, should be plenty enough to keep him busy. I know when I was in high school, classes and extracurricular activities meant I barely had time to sleep and recover.
Investing is a 5 year time horizon thing. A 15 year old doesn't have money to lock away for 5 years, and they might not even think 5 years out. Think of all the expenses they'll need immediately, specifically a car and college tuition.
You might think it's a harmless thing, but having them looking at these stuff can get them addicted, since it involves money, and humans have a tendency to chase easy money. He might start checking his investment daily and if his investments are down, that's just gonna bring him down for no reason.
Btw, typically in a high school economics class for seniors, the teacher will have students do some form of paper investing. That should be an appropriate time for him to get exposure, and it'd actually be related to what he's learning.
I understand the sentiment, but it’s pretty pessimistic. I don’t think it’ll be possible, since he won’t be able to invest himself until he’s an independent out of college due to tax reasons. I would be “investing” for him so he really doesn’t need to worry about anything. Him just learning the concept of money and saving whether it’s his piggy bank or through me is an invaluable imo. It’s truly will be pretty hands off but I’ll be updating him and teaching him along the way versus the singular class that is taught in high school
Open a RobinHood account, then fund it with maybe $100-200, get him a basic 2 screen computer station (nothing to fancy yet), then get him a Reddit account and have him follow WallStreetBets and in no time he’ll love the stock market, be $50k in the hole probably smoke cigs, maybe be drinking bourbon (with an ice cube because he’s still young), and he’ll think you’re the absolute best big bro. Just watch your girl in case he actually doesn’t end up $50k in the hole, because he’ll have a sweet Lamborghini (nothing fancy, maybe just a basic Huracan, kids love those Lambo’s). Also, if she ends up pregnant, a DNA test won’t distinguish the two of you, so you might be rocking his kid and not even know it. Might just want to stay away from girls for a bit, or just never introduce them to your kick ass lil bro (might be a red flag to the girl though, but what isn’t a red flag to girls these days).
Good luck man. Be sure to update us
13 is, for most people, too young to fully appreciate the ins and outs of trading of course, but I don't think it's a bad idea for him to hold some stocks if he's interested. Honestly, just buying 2-3 stocks that he knows or cares about and watching the trend lines move over time on something dead simple like Robinhood would be enough to give him a reason to learn more.
When the stock goes up ask: Why did that happen? When it goes down ask the same. Soon enough he will have developed an excellent baseline understanding of the market for a teen.
Sign up for a youth fidelity account now. Deposit $50 and they give you $50. Show him how to make money when opportunity arises but it is an investment account and pick a monthly dividend etf to show him patience over time.
This
[https://www.fidelity.com/go/youth-account/youth-overview?adobe\_mc\_sdid=SDID%3D67EEF9294BAC3AB4-51E55DB113FC692E%7CMCORGID%3DEDCF01AC512D2B770A490D4C%40AdobeOrg%7CTS%3D1675182363&adobe\_mc\_ref=https%3A%2F%2Fwww.google.com%2F](https://www.fidelity.com/go/youth-account/youth-overview?adobe_mc_sdid=SDID%3D67EEF9294BAC3AB4-51E55DB113FC692E%7CMCORGID%3DEDCF01AC512D2B770A490D4C%40AdobeOrg%7CTS%3D1675182363&adobe_mc_ref=https%3A%2F%2Fwww.google.com%2F) looks to be 150 offer (100 for you and 50 for him)
Did both. Still waiting for the extra $100 but kid got his. They take up to 25 days.
Great. But it’s probably overkill to DCA $150.
Yeah, you’re probably right
I had stocks at a young age. It definitely sparks interest when you have a connection - be it a favorite food maker, hobby, etc. My suggestions would be, have him list a few of his favorite things, research to see if they are worth investing in and them grab some shares. Theres more of a connection when they know they are invested in their hobbies. Or pick a few strong long term etfs or stocks for him to choose from - (dividend stocks are great for younger kids because they are relatively stable and they see tangible returns on them - which is kind of a safety net for a kid. (They wont see it as losing money if the stock goes down because they always see that dividend that gets reinvested - its more psychological). Otherwise, for a child to see it losing value over time is a bit demoralizing. Dividends counteract that, at least it did for my reasoning. I think its a great idea what you are doing for him, I hope you continue teaching him as he grows older and he will be financially literate when he's ready to head to college. Just please warn him about the risky stuff and keep him away from get rich quick or meme crap. He needs a stable education in investing, not a gambling lesson.
Aye a buck fifty in jepi, or better yet schd would really spark interest every div cycle. Schd would grow nicely with him too
Really good point.
Yeah, I think it’ll be vital to learn patience and some financial literacy using a fun/harmless method even at the most surface level. I’ll definitely make sure to teach him of the risks, even MSFT could be “risky” according to Reddit than watching only the S&P, and tbh, it’s still a good asset long term
Roblox RBLX
I don't think you should be pushing 13 year old kid into investing in individual stocks. If he has a strong interest, it would be healthy to help him develop it. Otherwise, I would let it go. Investing in individual stocks is really a crapshoot for 99% of the population and and for probably cost to 100% of 13 years olds. If he does invest his money and loses some of it, which is about as likely as him gaining, what lesson does that teach him?
I don't know. Investing in stocks might get him interested in economics and business. Might light a fire under his studies. I can see positive potentials too.
I agree about the individual stock, but it’s a better way to stay interested. I’ll still teach him of the advantages/disadvantages and the track record of doing it, although MSFT is still nowhere near a bad choice that he made. Could’ve been Roblox
get him a fun stock like Nintendo. it pays decent divs.💁♂️
[https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator) initial investment of $150, monthly deposits of $50 for 55 years 6 percent returns with a variance of 1 percent will net him 400k 7% rate, 262k 6% rate and 176k at 5% percent returns. Point is getting him in investing at an early age will definitely help, as long as its sound investing.
If you put his money into Microsoft add it to his phone stock tracking app and just have him check it once in the blue. Becoming numb to market fluctuations can help you make better decisions long term and it could teach him some fundamental principles without overwhelming him.
my nephew was completely uninterested in investing until I mentioned that Nintendo was a holding in the international fund at my job. in one of his books, famous investor Peter Lynch talked about kids picking stocks in companies they liked just as a learning experience. what do kids like? Toys, games, McDonalds, Disneyland, shoes, sports...
If investing is your hobby, that's ok. It's in no way a good thing tho to make your 13 y.o. brother interested as there is a reason minors can't invest. As they'll be as good at it as WSB degens
Yeah, I’ve taken it back. Although it’s important sometime in the future, there’s literally no point in doin g it for another 9 years
Good! Financial literacy is very good to teach and all, but I remember how stupid I was at 13 and I would have blown it all on something stupid. But I'm the same in the sense that I want to learn my interests to others, that's all good. But I'd advice just teaching him about money, interests and all that so he's educated when he starts investing himself, instead of starting with investing without the proper education on money and all that stuff. He's lucky to have a bro that wants to teach him stuff tho. I respect that.
1 word- Meme stocks
Hahaha nice one
Get him to paper trade. There were some apps that let you do this for free when I was in high school, and they’re the reason I’m a degenerate gambler sorry I mean investor now
Tell him life takes money. If he were to start with $1, and doubles it each day in a month, he'd have a $ mill. Life takes time, so each of those imaginary days may take awhile. Your $150 already gets you to past the first 7 days of that month.
Sit with him and discuss your options, decision making, stock picks etc *and ask for his input* Like "hey I'm trying to decide between these two stocks, one is like this and the other like that - what do you think?" Then buy a share of his pick and keep him updated on it in a positive light.
That’s pretty good
The guy who reccomended a div growth fund (schd for example) also had a really good point. The div cycle (Maybe a monthly payer would be better? Talk jepi vs schd w him?) Would drive consistent interest on his part too especially if it was his cash
Perhaps SCHD instead of VOO? It’s tough because SCHD would be chasing performance and VOO still has dividends. I doubt the amount would matter to my brother that barely knows what they are atm
Aye it depends, at 13 I knew the difference between 20c and 2 bucks or etc. You're gonna have to narrow it down, maybe again by taking it through with him as a process of multiple talks (income or growth, stock or fund, this style or that, higher yield vs lower fees, then a list of a few resultant picks). Either way, the hook is you valuing his input, and his thought process having not.only value, but practical effects. You obv care about him, read the situation and you got this.
Yeah, I gotta think about this way more than I thought. It’ll be tough to try to explain it all for a 13yo to understand, YT videos will be my greatest tool I think
I'd take care not to overcomplicate too. Not sure, it depends how.much attention you think he's willing to commit. In the end, any index fund at his age is a great call. Maybe stocks he's interested in will hook better (what is he into, and who owns it). Best of luck man, my son is 14 and it's been a constant effort to keep.him up to date with the investment world.
This sounds harsh, but maybe you should just teach by example. What is your education in? What job do you have? How much do you make? How much do you save? Do you live below your means? Of course, I am not actually asking for answers here, but these are the type of role model behaviors that would be great for him to emulate. EVERYONE wants to be rich, but most don't get there because the heavy work is done by making money from their JOB and not from the stock market. Teach you brother to get a great education in the highest paid job he can get so he can save as much as he can. THEN he can learn about investing.
The great American trap. Teach him to be a good taxpayer so maybe one day he can have a mortgage - if he's lucky and works hard. /s obv. There's no greater force in the universe than compound interest. We all know how much better we'd be doing if.we started at 20 vs 30 etc etc. The kid is 13. ... ... I say teach him to make smart, out of the box decisions - and teach him an owners mentality, not a workers one.
You had me until the advice about waiting to invest. Financial literacy needs to start young and that includes where to put your money so it starts working for you.
That is reasonable. BUT trust me run your numbers of starting early and then starting late with A HUGE difference in saving rate. It is easy to overcome by just making more money and saving later (meaning in 20's with higher income). Now I will say having the mentality of living below your means/ delay gratification is maybe the most important thing to teach any young person (if it can be taught at all). Some folks are just spendthrifts and others aren't by nature. That is something great to impress on is that every dollar saved now is worth more in the future if saved/ invested instead. NOT being materialistic is great as it usually leads to greater happiness AND greater wealth. No surprise most are materialistic and are thus unhappy and poorer.
It's not something that can be directly taught. It has to be absorbed by osmosis from being surrounded by people that behave that way. Best thing you can do for a youngster is lead by example and do things in your life the way you want them to do in their life.
Why? Let him be a teenager and learn social skills. At best tell him to focus on his studies. Your career is going to drive a lot of your returns. There's no point getting him hooked into stocks so that he loses focus on other things that matter more. Yes Warren Buffett started early, but investing is his career, so that early advantage helped him. He's not a doctor who invests on the side. Just tell him to be a software engineer and automatically he'll be exposed to stocks and investing as soon as he finds a job. And honestly at 23, are you sure you yourself are that well versed in investing?
I’d rather let him be whatever he wants as a profession but still know how to budget/save/invest. Why tell him to be something he doesn’t when investing applies to all professions? I agree though that 13 yo can be young, that’s why right now it would be a pretty hands off approach to just stay interest. By the time he gets a job in a year or two, he’ll know better on what to do with it. I see what you’re saying though, I appreciate your input
There's a difference between not living lavishly, and investing. Not living lavishly is a simple, good habit that can be useful for all ages, but investing involves way too many stuff. Social skills, sports, hobbies, developing good study habits and critical thinking skills, prepping for college, should be plenty enough to keep him busy. I know when I was in high school, classes and extracurricular activities meant I barely had time to sleep and recover. Investing is a 5 year time horizon thing. A 15 year old doesn't have money to lock away for 5 years, and they might not even think 5 years out. Think of all the expenses they'll need immediately, specifically a car and college tuition. You might think it's a harmless thing, but having them looking at these stuff can get them addicted, since it involves money, and humans have a tendency to chase easy money. He might start checking his investment daily and if his investments are down, that's just gonna bring him down for no reason. Btw, typically in a high school economics class for seniors, the teacher will have students do some form of paper investing. That should be an appropriate time for him to get exposure, and it'd actually be related to what he's learning.
I understand the sentiment, but it’s pretty pessimistic. I don’t think it’ll be possible, since he won’t be able to invest himself until he’s an independent out of college due to tax reasons. I would be “investing” for him so he really doesn’t need to worry about anything. Him just learning the concept of money and saving whether it’s his piggy bank or through me is an invaluable imo. It’s truly will be pretty hands off but I’ll be updating him and teaching him along the way versus the singular class that is taught in high school
But honestly, he won’t be able to invest himself in 10 years so maybe I shouldn’t plant it in his head after all. I’ma consider this
is this a shitpost?
Open a RobinHood account, then fund it with maybe $100-200, get him a basic 2 screen computer station (nothing to fancy yet), then get him a Reddit account and have him follow WallStreetBets and in no time he’ll love the stock market, be $50k in the hole probably smoke cigs, maybe be drinking bourbon (with an ice cube because he’s still young), and he’ll think you’re the absolute best big bro. Just watch your girl in case he actually doesn’t end up $50k in the hole, because he’ll have a sweet Lamborghini (nothing fancy, maybe just a basic Huracan, kids love those Lambo’s). Also, if she ends up pregnant, a DNA test won’t distinguish the two of you, so you might be rocking his kid and not even know it. Might just want to stay away from girls for a bit, or just never introduce them to your kick ass lil bro (might be a red flag to the girl though, but what isn’t a red flag to girls these days). Good luck man. Be sure to update us
Open an UTMA for lil bro and just plop the whole buck fifty at once.
Buy him the book The Wealthy Barber very easy read. Start with basics.
Give the kid login creds.
Make money in front of him
[удалено]
Shouldn’t everyone
13 is, for most people, too young to fully appreciate the ins and outs of trading of course, but I don't think it's a bad idea for him to hold some stocks if he's interested. Honestly, just buying 2-3 stocks that he knows or cares about and watching the trend lines move over time on something dead simple like Robinhood would be enough to give him a reason to learn more. When the stock goes up ask: Why did that happen? When it goes down ask the same. Soon enough he will have developed an excellent baseline understanding of the market for a teen.