Wednesday, June 20, 2007

Kids And Money

I was reading a book to J this weekend called Growing Money. She has been curious about money and what it means to have or not have it, to spend or not to spend it. The book is a great primer on investing for kids even if they are too young (like J is) to fully understand. Some of the concepts will stick and at a later point in her life it will come together. The author mentions at the end of Chapter 2 that investments are inherently risky and you need to decide if you can stomach the ups and downs or would rather stay with slow and low growth.

I asked J which way she would go if gave her some money to go "invest". She responded "I'll go with the up and down". That would be interesting. Up to now, my sense has been that she is highly risk averse and takes time to warm up to new situations but she may very well surprise me by showing none of the conservativeness when it comes to handling money. Watching the Lauren Greenfield movie Kids + Money was instructive in light of J's earlier comment.

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