Money - a summer reading list for kids

[Htown Harry]

I don't believe we have seen any Young Dreamers posts from anyone under 12, so this post probably won't reach the intended audience directly.

(Actually, I WAS retired back when I was 12, sort of. Not FI, but certainly carefree.)

But maybe parents / members in their 20's-40's (or older members who are grandparents) might be interested in books on this list as gifts.

[FONT=&quot]MONEY-MINDED BOOKS FOR YOUR CHILD’S SUMMER READING LIST[/FONT]
[FONT=&quot]Just because it’s almost summer vacation, it doesn’t mean the learning has to stop. Get involved with the Children’s Book Club and teach your children about the basics of money with these books recommended by Oregon’s Office of the State Treasurer. The list includes books for children from infant and preschool age up to 12 years old....[/FONT]
[FONT=&quot]Download the Reading List (PDF)[/FONT]

 

[Nova]

I have two g-gaughters (14 and 14.5) who are coming along quite well with finances. Both have had checking accounts with ATMs for the past two years. No overdrafts yet! Youngest one took the balance down to $.21, but she knew exactly how much would be left. I make a small monthly EFT deposit into each of their accounts and their parents deposit weekly allowance into each of their accounts, too.

I looked at the referenced reading list, but didn't find what I was looking for. Have you seen/heard about a really simple book for young investors?

I would like to give each of my g-daughters such a book and offer a challenge. I was thinking about making it an investment game...like investing with monopoly money:

1) read the book (what book??)

2) use $XX of monopoly money

3) pick stock to "buy" (write a simple reason why they chose the stock(s)

4) track their investment(s) over time...say quarterly for a year

5) write an essay (one page) about what they learned and what they would do differently next time

The reward for completing "the game" would be $100, with an option to play for another year.

PS: If this is not the direction you intended this thread to go, oops , I'll post it in a separate thread.

 

[LOL!]

If you wish the kids to learn good investing habits, you would not encourage them to purchase a single stock ever. You would teach them about asset allocation, ETFs, diversification, equity:fixed_income ratio.

My daughter opened a Roth IRA by walking into the local Fidelity office. So far she has not invested the money, but she has learned the following:

Fidelity employees cannot copy the spelling of her very easy name correctly off her drivers license.

Fidelity employees cannot spell the name of her beneficiary (her brother) either.

And she needs to check EVERY form for correctness before she signs it.

She will likely invest in IYY (US total stock market) since that is no commission at Fidelity and she only has enough money for a few shares.

For a book, I just do not know. Kids only read such books on a "need-to-know" basis, such as an exam in school.

 

[Nords]

I looked at the referenced reading list, but didn't find what I was looking for. Have you seen/heard about a really simple book for young investors?

It's come up before but I don't think there's an easily searchable set of terms or tags for it.

Marshall Brain's "A Teenager's Guide to The Real World"
"The Motley Fool Investment Guide for Teens"

And, as much as she scares me with her intensity, Suze Orman's show is a wonderful springboard for teen discussions on finances. Of course if they're old enough then they get to do a jello shot every time she says "Approved!"

 

[Nova]

My daughter opened a Roth IRA by walking into the local Fidelity office. So far she has not invested the money, but she has learned the following:

Fidelity employees cannot copy the spelling of her very easy name correctly off her drivers license.

Fidelity employees cannot spell the name of her beneficiary (her brother) either.

And she needs to check EVERY form for correctness before she signs it.

She will likely invest in IYY (US total stock market) since that is no commission at Fidelity and she only has enough money for a few shares.

For a book, I just do not know. Kids only read such books on a "need-to-know" basis, such as an exam in school.[/QUOTE]

LOL....LOL! My g-daughters have really simple to spell names...each contains only 4 letters, so I hope they won't have your problems. They are both doing well with checking accounts, but are not even looking at stocks/bonds or any combination. What I want them to do is develop an interest in investing. I wouldn't be surprised if they zeroed in on Google, Abercrombie and Fitch, Coach, or something else that they actually know about. I don't really care what they pick, but would do a "happy dance" if they knew anything about diversification.

I don't want them to actually buy any stock...only "pretend" to buy with the monopoly money I give them. I want them to pay attention to their "pretend shares" to the extent of looking up the stock price on a quarterly basis to see how much they would have "made" or "lost"...maybe to wonder why they "made" or "lost" money.

I'm hoping they will be interested enough in the $100 prize to play my "game" in order to get the real $100 I'm offering as a prize. I'm also hoping they will want to play the game again the following year...where we might talk about "buying a piece" of the market, and what kinds of fees might be involved.

 

[Nova]

Nords, I'll check out the books you referenced. Suze Orman...it's on TV as I post. Maybe I'll require that they watch at least a couple of shows this summer. I think they will pick up on the "You are sooooo denied". May include "bonus dollars" for stories where they "denied themselves".

Bite your tongue!! Don't even talk about jello shots...they are only 14.5. Stuff kids can get into these days scares me to death. Thanks for the post.

 

[LOL!]

LOL....LOL! My g-daughters have really simple to spell names...each contains only 4 letters, so I hope they won't have your problems.

Don't get your hopes up. How many different ways can you misspell "Mary"?

 

[Purron]

Nords, I'll check out the books you referenced. Suze Orman...it's on TV as I post. Maybe I'll require that they watch at least a couple of shows this summer. I think they will pick up on the "You are sooooo denied". May include "bonus dollars" for stories where they "denied themselves".

Bite your tongue!! Don't even talk about jello shots...they are only 14.5. Stuff kids can get into these days scares me to death. Thanks for the post.

Yup, jello shots are just for us "older folk".

I do, however, think Suze sends a positive message about living within your means. Her show doesn't resonate with most on this board because we're already in the frugality camp. I think many youngsters may gain from her insights. Her message is often to consider the immediate pleasure of an expenditure against the long term consequences. Good stuff for young people to consider.

 

[lhamo]

Aside: My kids (9 and 5) LOVE Suze Orman. They look forward to the "Can I Afford It" segment in particular. My DS (the 9 year old) has gotten really good at analyzing people's finances as presented there. Can almost immediately tell if they have enough in retirement and emergency savings, and knows instantly if they are living within their means. DD isn't at that point yet, but cracks up every time somebody gets denied. It is pretty fun to watch them watch it with me.

lhamo

 

[Nova]

Purron and Ihamo, I will be with g-daughters in July...and will have my yumm-o chocolate chip cookies ready just as Suze is coming on. We'll see where the conversation goes from there. Ihamo, your kids sound adorable...and smart!

 

[Nords]

Bite your tongue!! Don't even talk about jello shots...they are only 14.5. Stuff kids can get into these days scares me to death. Thanks for the post.

Yeah, our 17-year-old claims not to know what a jello shot is either. That's her story and she's stickin' to it. But some Notre Dame sophomores have already taught her how to play Texas Hold 'Em and beer pong.

Sex, drugs, rock&roll: I'll feel lucky to come out ahead on one of the three. Not that I'll get to choose.

 

[FreeAt30]

I don't believe we have seen any Young Dreamers posts from anyone under 12, so this post probably won't reach the intended audience directly.

(Actually, I WAS retired back when I was 12, sort of. Not FI, but certainly carefree.)

But maybe parents / members in their 20's-40's (or older members who are grandparents) might be interested in books on this list as gifts.

Fantastic. Does anyone know if a few of them stand out from the rest?

 

[HFWR]

If you wish the kids to learn good investing habits, you would not encourage them to purchase a single stock ever. You would teach them about asset allocation, ETFs, diversification, equity:fixed_income ratio.

Though I am also an indexer, I think learning to evaluate stocks would help take the voodoo out of investing. Such things as p/b, p/s, p/e, cash flow, dividends, etc. would show that there's a business behind that stock certificate. Too many people "play" the market...

 

[FreeAt30]

Though I am also an indexer, I think learning to evaluate stocks would help take the voodoo out of investing. Such things as p/b, p/s, p/e, cash flow, dividends, etc. would show that there's a business behind that stock certificate.

Agreed. They are great skills to have.

Too many people "play" the market...

Some play it all the way to FIRE.