Stocks for kids?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought Roblox when it went under $27 in mid September. Sold it yesterday after the earnings when it went over $41.
The kid knew the purchase price, the amount of shares, and the earnings date. Since we bought 20, every dollar it went up, DC could get twenty robux.
We did a lot of math over the last almost two months if nothing else had come from it. Ofcourse it ran up way too much yesterday and I sold it while DC was at school.
I told him about short-and long-term taxes and that we want to use the money to buy again once it goes under certain price.
I'm not into dividend stocks, but they are great for math and learning about different types of stocks.
Also, there's not need to even buy all the stocks. I would ' buy' each stock for $1000 simply on the paper and then do monthly, quarterly, yearly review to see if money was made or lost.
There is also list of financial terms suitable for different ages I would go through as they come up.
DC inherited a lot of money so this is partly why I have to get them involved in learning. I would be scared to hand it all to them at 18/21 without much financial knowledge.

Bought around the same time but we try to hold stocks for at least a year to avoid short term taxes.

Sure. I hardly pay any taxes being alone with two kids earning low income. But yes, next one up is talking about the tax rates for short/long-term capital gains. I have no patience for a year with small amounts that are for DC. The almost 20 percent up in one day was too much for me. I wanted DC to see how we can use the money we made and maybe buy 30 shares now.
DC ofcourse said we sure can afford some Robux from Amazon. We have spent a lot over the years buying robux. This money better come from the company from now on. First try went well.
I'm hoping for even better fourth quarter since a lot of kids get robux for holidays. Will see. We are talking about less than thousand her being invested.

Cool. I like your perspective on buying Robux with cap gains lol.

[Anonymous]

You’re teaching them to gamble, essentially. It also might teach them overconfidence in their wins.

I say this as an MBA from a top school.

They should really be taught how to dollar cost average, auto debit to an account and the time value of money. Of course, that’s less sexy.

[Anonymous]

Anonymous wrote:You’re teaching them to gamble, essentially. It also might teach them overconfidence in their wins.

I say this as an MBA from a top school.

They should really be taught how to dollar cost average, auto debit to an account and the time value of money. Of course, that’s less sexy.

Depends on the age of the kid. A young kid can learn about companies this way and how to apply math skills to understand them in a way that's motivating. If they compare it to assorted indices, they will likely find that over time they do better just with that.

Once they are old enough to have their own investment accounts, then you can teach them dca, auto invest and set it and forget it in an index with 90% of their money and pick stocks with their other 10% if they want to. Kids who do this are much more likely to be interested in businesses in general.

That's what I did with my kids--one just graduated college is not yet 22 and has already amassed more than 20k (90% in total market index, 10% stock picks) in a Roth IRA from HS and college jobs and now also is contributing 15% of income to TSP in addition to the Roth. He also randomly is interested in companies and reads up on them. So I think the approach works--and I'm doing it with my daughter now too.

[Anonymous]

Bought DS credit card stock. Since it is inevitable- I’d rather he profit off Americans poor spending habits