Teen Money
The Money Talk With Your Teen
For today's parents, raising teenagers can be overwhelming. Caring and educating your teen is a full time job with both rewards and challenges. Too often parents leave out money as part of the educational process.
In today's fast paced world, teaching your teen the basics of positive financial habits is a must. Experts say the days of corporate loyalty to employees are over. This means that pension checks may not be a reality for today's college graduates who will most likely work at a minimum of five different companies over the course of a 30-year career.
Therefore, it is imperative that they understand how to invest and create wealth for themselves. Knowing how to invest conservatively in stocks can make or break your teen's financial future. When is the best time to talk to your teen about investing?
Here's my golden rule: when the latest "toy" your teen wants is over $100, you know it's time to talk with them about money.
For most working and middle class parents, iPhones and iPads are at the higher end. However, your teen's desire for these products gives you the perfect opportunity to talk to them about owning Apple stock.
If your teen has a summer job, inspire them! Open an online brokerage account in their name with as little as $500. Tell your child that if they invest a portion of their summer earnings in stocks, at the end of the summer you will match their contributions to the account. Therefore, if they have deposited $300 of their summer earnings, you'll match that contribution with an additional $300 deposit.
Here's the final part of the deal: once there is money in their brokerage account, you can work together to choose which companies to invest in. You can choose blue-chip dividend paying companies like Coke or Disney, or solid dividend paying growth stocks such as Whole Foods. Your teen will then start receiving dividends checks every thirteen weeks, and those dividend checks will serve as instant proof that investing in stocks pays off.
As you know, success is simply a series of positive habits. When you take this approach to money with your kids, you'll be teaching and reinforcing a lifetime of positive financial habits.
In the Wealthy Investor program I teach three major strategies:
Covered Call Writing
Selling a call option means that you would be selling the right, not the obligation, to someone in the marketplace to buy that stock away from you at a later date.
Dividend Capturing
Institutional investors collect millions of dollars per quarter collecting dividends on Dow components like McDonalds, NIKE and AT&T. So can you.
Volatility Trading
Volatility allows you to purchase a stock and program a sell order in your online trading account which will sell the stock once the price rises a specified amount. As stock prices change throughout the day, you’re making money while you are out enjoying your life.*
It’s time to get the financial education you need to become financially free.
So what is your next step?
Order The Wealthy Investors Guide to Stock Market Success or sign up for my FREE Stock Trading and Investing E-Mail List on this page.
In The Wealthy Investors Guide to Stock Market Success, I’ll explain in easy to understand language everything you need to know to get started.
In this original five CD audio series, you will learn the basics of covered call writing and volatility trading and how to use these powerful trading tools in your portfolio.
Yes, you can be a wealthy investor if you get started right now.
* DISCLAIMER: Stocks and options trading involves risk and is not suitable for every investor. The stocks and options prices vary and, as a result, clients may lose or gain from their original investment. Stock illustrations posted on TheWealthlyInvestor.net web site are for illustration purposes only. Your personal results as a trader/investor may vary from the WI students listed above.
