What’s that old saying? The apple doesn’t fall far from the tree? It’s hard to argue with the idea that we perpetuate the habits of our parents, for better or for worse, consciously and unconsciously – it’s something we all do. One of the funnier/clever ad campaigns I’ve seen in recent years are the Progressive Insurance commercials about “becoming your parents.” Aside from being hilarious, they perfectly capture how repeating habits from the older generation is almost inevitable and must be recognized as it happens. Breaking these habits takes recognition, guidance, and training, which I relate to when helping my clients. 

As a family financial planner, I must help people gain clarity and understand financial savings and investment opportunities that perhaps they were not exposed to before. Many of us grew up as children of Baby Boomers or even Generation Xers; these generations were all taught by their parents that money needed to be saved at all costs and risks should be averted. To the Greatest Generation’s credit, war and economic hardship were a part of life, so being conservative and tight with saving strategies was a natural response. But, we do not have to carry fiscal philosophies from 80 years ago with us today. 

Stocks For Kids – Breaking Old Habits

I clearly remember, during the first days of coming back from summer break and entering the first grade, my elementary school had a representative from our local bank come in and help the kids start their first savings account. There was often an incentive to start, such as a chocolate chip cookie or free bookbinder when you signed up. Over the years of speaking with clients and colleagues in the financial fields, I’ve learned that this was a commonplace experience. While I appreciate the sentiment of teaching kids that saving money and keeping track of finances is a great place to start, it’s certainly not the strategy that will yield the best results. From such a young age, we are subjected to savings strategies derived from the fear of loss and not seizing the opportunities to gain; we need to break these habits. 

Salary for the Middle-Class – Is Inflation Squeezing the Middle-Class Out of Existence?

Stocks for Kids – Laying the Foundation Early

If you keep up with my blog, you know that I’ve recently had my fourth child, a beautiful baby girl, Isla. With each of my kids, I’ve started an account with approximately $1,000 to invest in some stocks when they are born and keep them in their name. This is a great opportunity to not only execute on some investments but also begin teaching your kids at a young age how investing works, what stocks are, and why they may want to invest in one company over another. 

This account is a great defense against our house getting invaded by plastic junk every birthday or holiday.  We let relatives (Grandma) know that we prefer they share an experience with our child, and if they want to do anything else, we can put it toward the 529 plan or buy a stock. Stocks for kids is not the easiest concept for your young ones to grasp, but it’s an important lesson to teach as they grow, as most elementary schools will not discuss investment strategies. I like to pick companies that they will understand and see often.

For my three boys, Finn (turning 9 in July), Rhys (turning 7 in July), and Boden (tuned 3 in March), I’ve been tracking the stocks chosen for each, and the return has been positive so far. Even if the returns weren’t positive, I find the lessons I’m able to teach my boys about investing have been invaluable and a great learning experience. 

Here’s how the initial deposits into my three boys’ stock portfolio are looking so far:

• Finn – August 2013, Amazon, three shares @$301.00/share – currently worth $10,167

• Rhys – August 2015, Apple, nine shares @$105.76/share (4:1 stock spit, so he has 36 shares now) – currently worth $6,387

• Boden – Apr 2019, Google, one share @$1,236.00/share – currently worth $2,875

350K per Year for a Middle-Class Lifestyle? Click the Link to Read On!

Stocks for Kids – Isla’s First Stocks

As Isla was just born at the end of winter, I thought it would be a great idea to do a group poll/contest for what stock I should buy for her this spring. If you were going to put $1000.00 into a publicly-traded stock for your child, what would you choose at this point? Would you stick with some of the old reliables like the ‘house of mouse’ or one of the e-commerce giants? Or, would you choose something with higher risk/reward potential? 

I’d love to hear your thoughts, opinions, and suggestions for Isla. I will be picking a stock, and the individual who submitted the winning stock will receive a free custom-tailored college savings report to help start planning for your child’s future! 

Please share your thoughts, suggestions, or questions on my Facebook or LinkedIn page, and if you’d like to get in touch with me, hit the link to set up a call.

*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

*Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance.