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The Fallible Man

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A Different Kind of Man a different kind of Lifestyle

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Investing 101

I am so incredibly proud, we just opened my 8 year old daughter’s first brokerage account. Most of the big brokerages offer something called a “Custodial Account” for minors which is in their name, but you control until they are of age. Now, if you don’t understand anything about the stock market or investing you should learn before you try something like this.

I recently started teaching my child about money, we have a deal in which she can read one book at her level a month that I believe can teach her something of value. She then writes a book report on the book explaining the overall subject, the lessons she learned and how she can apply them to her life. She receives $10 a book and I buy the books, pretty sweet deal right? The caveat comes from the first book she read call Money Ninja: A Children's Book About Saving, Investing, and Donating (Ninja Life Hacks) by Mary Nhin. Available at this link on

The book teaches the main characters that there are things to do with money other than spend it. The first lesson for my daughter was that she got $10 but she did not get to spend $10. The rules for her are simple, she has to donate $1 to whatever cause or charity she wants, $3 goes in savings or an investment of her choosing and she can spend $6. I would have skewed that ratio to invest or save more, but I figured I was pushing it to keep her engaged in the program. I explained what kind of stock I thought would give her the best return and then we emptied her piggy bank which had been stocked by my co-workers when we were first expecting my oldest. I knew she had a decent little start which would allow her investment a better start and she knew she couldn’t spend the piggy bank money anyway.

(On the subject. Watch this video on YouTube and it will make you think, I came across it after I was already working this deal with my daughter.)

We are also opening up a child’s savings account during my days off next week so she has somewhere other than a piggy bank to put her earnings. A lot of banks have a program to help children learn about savings. We also discussed that the stock market has some risk, so I am guaranteeing her initial investment to make sure she was not afraid to try. The school system is not designed to educate you about money, in fact author Robert Kiyosaki and several other financial author’s believe it purposely does not. It is easier to have a world full of mindless drones enslaved to the system then to risk teaching people how to properly use money to their advantage. If everyone was smart about money then who would do manual service jobs we all rely to make the world spin as we know it. I am serious, all jobs are essential to make the world work the way we know it. The question is what do you want for your children? I want to learn about money and teach my children about money because I want them to succeed more than I ever dreamed of. The best way I can help them do that is to educate myself and make sure to pass on that knowledge while they have a bigger span of time to take advantage of that knowledge.

Improve yourself, improve your children!

What do you think about my idea with my daughters? The younger one will start in a year or two as her reading gets better. Let me know and thanks for sharing with me.

Be better tomorrow because of what you do today.


Full disclosure: The Book is an affiliate link to that book on Amazon, it does not affect your price if interested.

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