My daughter is an investor!

My 7-year-old daughter is an investor!

When she receives gifts of money (birthdays/Christmas), we have a requirement that she must take at least half of it and place it in her college fund or her new car fund (Yes, we do have a car fund – driving is ONLY 9 years ago).

What is she investing in for her college fund?

  • Aggressive Growth Stock Mutual Funds
  • Growth Stock Mutual Funds

What is she investing in for her car fund?

  • A miserable savings account.  This is changing next week!
  • It will be moving into growth stock mutual funds.

You might think that I am a FREAK.  You might think that my daughter is being mistreated because Jenn and I are requiring her to invest her gifts of money.  You might think that we are robbing her of enjoyment of her childhood.

I would just say this – MY DAUGHTER WILL NOT BE B-R-O-K-E!!!  We are equipping her to WIN.  We are teaching her to PLAN.  We are demonstrating in the most tangible way possible that DEBT IS DUMB, INVESTORS WIN, BROKE IS HORRIBLE, DREAMS ARE ACHIEVABLE, A LITTLE INVESTED ALL OF THE TIME MAKES YOU WEALTHY.

Can you say "Paid-for 1st card?", "Paid-for college education?", and "Paid-for 1st house?"

If you are not teaching your kids how to manage money well, YOU ARE FAILING AS A PARENT!!!


  1. jane muir on March 14, 2007 at 11:55 am

    joe… I bought my first car at age 18 1/2… I was thankful to be able to use a family vehicle when I needed it…. not when I wanted, but when I needed it.

    We lived on a beef farm, my dad had a 7 day a week as an hourly person with GM working afternoon shift… he needed someone to feed his animals in the evening. I need someone to feed my 4-H projects in the morning so I didn’t have have to get up at 5am…. so we bartered… He gave me my 4-H project out of his stock, paid for the feed and vet services (keep in mind, I had two 4-H projects, he had over 50 head of cattle!

    When the steer was sold at the county fair… the ENTIRE check was deposited into my savings account. We did this for THREE years… at the age of 18 1/2, and the year of 1985, I had $2,000 for a down payment on a NEW car… my payments were only $137.65! I could do that as a new hairdresser. No, I was not rich, and I still did pay the interest, but I worked for that $2,000, contributed to the family farm, and had fun! All while learning about how if you put the money away, you will reap the benefit….a CAR… way cool!!!

    Giving your daughter all the money to blow now is not good… as her parents, you are to teach her, and you guys do a GREAT job from what I hear!

  2. jane muir on March 14, 2007 at 11:56 am

    sorry for the book above… didn’t realize it was so long! Sharing our stories is what helps ALL of us grow and be creative!

  3. Will on March 14, 2007 at 12:50 pm

    That is awesome! Your daughter is smarter and better prepared for life at age 7 than most Americans will be in their whole life.

  4. Mark Asbell on March 15, 2007 at 9:17 am

    Awesome Joe. I don’t think you’re a freak. I used to know someone whose father was like you – “forced” the kids to invest while they were little. Then when they were teenagers with their own jobs he would take their paychecks and invest from them before giving them a small amount to spend. They were so thankful in their 20’s when their investments were already worth in the hundreds of thousands. I can’t imagine being upset with my father for showing me a little tough love to teach me how to be rich. That would sure beat having to learn the hard way which is to be broke first – as an adult with responsibilities…

    Shawna and I are getting started with our 3 & 4 yr old. They don’t fully grasp the concept of time, but we’re using the calendar to try and show them the Disneyworld trip they’re saving for is in about 45 days. When they get the time concept down I think I’ll make a grid picture of a car so they can color it in as they save through the years(like the one you did with your house floorplan). Since this is totally new to me (my dad didn’t do it) I’m very open to creative ideas of how to get the kids to REALLY understand this stuff. My kids are going to win too – whether they like it or not :)…

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