(FOR HIS 18TH BIRTHDAY MY SON WANTS A *%$#&?)
August 25, 2023
Hello everyone,
My son, Alex, turns 18 next month and so is officially classed as an adult. So, I asked him what he wanted for his significant birthday.
I expected the most common requests: money, new iPhone, clothes, etc.
But he responded: a trading account in his name (which I will fund together with his savings)
I said, ok, that’s easy. Did anyone here ask for that from their parents when they turned 18?
But after we open that account, the real education starts. How many parents have tried to advise their adult teenagers how to manage their finances only to be met with offhand remarks, ridicule, rebukes, or sometimes even just plain disinterest? I imagine many parents have been blindsided by this old comment from young adults: “You invested in this stock/investment, and lost money, so why should I listen to you.”
Thankfully, my son and I have come to an understanding, whereby he will liaise with me before he invests/places a trade. This ensures that we, as a family, are moving in the same direction and are not at odds with one another, which can make achieving an end goal very difficult.
There are dozens of books in the world on finance and how to manage your money. But if you wanted one for young adults, I would recommend you look at the following: I Want More Pizza: Real World Money Skills for High School, College, and Beyond by Steve Burkholder.
Primary topics discussed include saving, spending, prioritization, goal setting, compound growth, investing, debt, credit cards, student loans, mental blocks, and taking real-world action.
Teaching young adults about anything, especially financial education, should be done in small chunks of time. Focus for about 20 minutes on a topic and then break. This ensures what is shared is taken in and processed. After all, does an 18-year-old want to hear your well-meaning advice for extended periods? Most young adults are easily distracted by other things going on in their lives.
The important things a teenager turning 18 can do/should know:
1) Open a bank account.
2) Open a credit card.
3) Understand their expenses.
4) Avoid debt at all costs.
5) Understand that there are dozens of ways to make money.
6) Get a job.
7) Be Careful Who You Trust.
8) You Don’t Have to Have It all Figured Out.
9) Take responsibility for Your mistakes.
10) Be kind to others and yourself.
I will also encourage Alex to keep a trading journal so that he can see where his profits and losses occurred. And he can also make notes on each trade he does. It’s a good habit to start and keep.
Beside the Thames in Twickenham, U.K. this past summer
The Fed remarks at the Jackson Hole Symposium on Friday could cause some volatility in the markets. Hang on!
Wishing you all a wonderful weekend.
Cheers,
Jacquie
