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Informative Articles

7 Simples Steps to Financial Freedom and Wealth Building - Step 2
Copyright 2005 William Tan Simple Steps to Financial Freedom and Wealth Building STEP 2: Achieve Financial Freedom - Choosing Your Escape Vehicle Do you want to achieve financial freedom? For most people, this is constantly on their mind. If...

How to Avoid Dumb Investment Mistakes
Smart people sometimes make dumb mistakes when it comes to investing. Part of the reason for this, I guess, is that most people don't have the time to learn what they need to know to make good decisions. Another reason is that oftentimes when...

Investing in stocks and shares
Stocks and shares, unit trusts and investment trusts Shares give you part ownership of a company, so the value of your investment is linked to how the company - and the overall economy - performs. You can also invest in funds which buy shares...

Mid-Cap Stocks: Asset Class With An Identity Crises
Much like the middle child, mid-cap stocks have long struggled to find their identity. Carved out from the upper echelons of the small caps and the lower end of the large caps, the mid-cap sector has a rough definition of stock with a market...

What Is A Company?
By legal and business definitions, a company is a business enterprise, often times engaged in an industrial or commercial enterprise, a group of people associated through a common goal or financial objective. Companies vary in types, depending...

 
Stocks for Christmas? Gee Thanks Mom!

Have you read any of the "Rich Dad, Poor Dad" books? They are excellent books for people who want to increase their financial savvy. I have been investing in mutual funds and stocks for over 10 years and it has helped increased our family's financial worth. Now I want my kids to learn the different ways that they can get their money to work for them.

For Christmas, I got my 12 year old daughter stock in AFLAC and MDU. My 14 year old son got Emerson Electric and ITT Industries. As you can imagine, neither of them were thrilled with their presents. However, I also got them the game "Cash Flow 101" (you can find this on the Rich Dad, Poor Dad website or sometimes on Ebay). This game is great to teach kids (and adults)

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how to make their money work for them. I recommend it highly.

Over Christmas, we spent almost one whole day playing the Cash Flow game. You are randomly given an occupation. My son was not excited when he got to be a janitor with minimal income and my daughter got to be a doctor. However, it soon became apparent that the doctor had much higher expenses and he learned that a janitor can still invest and make money.

I hope the next time I can tell you that the kids are going to NASDAQ everyday to check how their stocks are doing. Slowly but surely I think they are learning what it takes to make passive income (have their money work for them).

About the author:

Mother of 3, Loves to invest