Investing. It seems so complicated. And so much has been in the news lately about how “dangerous” it can be. Not to mention how scared most people are given the recent financial meltdown. So why should kids be learning about investing? And why are big funds so interested in getting them to learn about investing?
How young should you start investing?
9 year old, Ryan Ross started his business with chickens, then lawn mowing and finally power-washing housing. The trick? He charged his customers a premium and hired someone else do to the work for cheaper and kept the difference. He then bought buildings in BC and Ontario! This is exactly what corporations do, but some would call that evil, or the devil or whatever. If thats your opinion, this blog probably isn’t for you.
Or take for example, Willow Tufano, a 15 year old (at the time) who has already closed on her second home as an investment property. She has hopes of having 10 by the time she is 18. These are just a few examples, I personally started buying stocks when I was 19, granted it was through the company I am working for (I still buy stocks through the company), but now I have been running my own portfolio for almost a year. I have read many books on investing but the fact is, although having theoretical knowledge is powerful, if you don’t have goals, rewards and a series of SMART goals for your investing, it doesn’t matter how much you know you won’t make much money for long.
When big funds are looking to get kids started in investing to the point of changing the curriculum, I think its very good. Look at the baby boomer generation, many of them covered in massive debt not including their mortgage (which literally means “until death” from latin translation), they think saving money (which is devaluing consistently through Quantitative Easing) will help them. The financial meltdown proved that it didn’t.
So kids need to be more financially literate from a much earlier age yes, however, these funds which are looking to teach them about this investing also have another intention in mind. You guessed it! If they teach them about investing and leave a good impression, who are the kids going to sign up with when it comes time to open an investing account? That fund – exactly. Now, as a conservative capitalist, its a phenomenal idea! Its a brand new source of revenue and the business model, if done right, could turn the economy around, albeit two generations later.
So as long as these funds and companies take a long term approach with these kids in investing they will be VERY profitable. If they take a short term approach and don’t properly teach or fully teach upcoming students then, it will be a mass one-time influx of profit and commission and then a sharp downfall. I also hope that the industry doesn’t just teach them about packaged funds like mutual funds and stuff, those are high commission and don’t build real wealth. But the notion is plausible, as with investing the young you start the better off you’ll be later on, but try telling that to kids and teens. Hopefully, they will have had a hard enough look (although at the cost of their parents) on how the economy, stock market and companies can really effect everyone’s lives that they will want a different life badly enough to make a financial change!
What are your thoughts on funds doing this? Think it will help the economy? Make students more confident and knowledgable in investing and how to make money through passive or portfolio income instead of earned income – the most highly taxed income type available, its also the one almost everyone receives the majority if not all, of their income through.
Ryan Ross – Dubbed Trump in the making!
Teaching Kids About Investing