PickyKidPix is now 13-years-old and has shown interest in the stock market for quite some time. Recently, she asked me if she owned any Disney stock. I had purchased a handful of shares when she was born with the money her grandmother (my mother) had gifted to her. My mother had also set up a custodial stock trading account for each of my kids as well. It was her way of helping them with college tuition.
PickyKidPix tells me that she’s been tracking Disney stock (DIS) and that it’s at an all time high. “Can I sell some?” she asks. I spent last summer transferring the kids’ stock accounts into my brokerage account to put all the accounts under one roof, so to speak. I figured that now is a good time to let my daughter trade. I closed her savings account and moved the money to her brokerage account, and figured out the user name and password so she would be good to go. Read more…
PickyKidPix wants to trade stocks this summer using her stock account that her grandmother set up for her AND her own money. Too bad I forgot the password. It might be faster for me to transfer her account to my brokerage account than to actually figure it out!
I tried to sign us both up for a Community Education class on basics of the stock market. Alas, they called back because 1) I forgot to put the security code of my credit card on the form and 2) they said you have to be 16-years-old to take an adult class. There are no stock trading classes for kids though.
When I called the nice people at Charles Schwab, they said that they hold stock trading classes at their local branch in my town. Hurray, I thought! I’d save the money on the class plus the time! But … when I went to sign up, the classes were much farther away and way too advanced for my 11-year-old.
Back to square 1.
I decided to teach her the basics of stock trading myself: I call this Teaching Kids about Stocks and Investing 101.
I learned the old fashioned way in m early twenties. I used a phamplet from Charles Schwab plus a method commonly known as trial and error. I also followed a few helpful blogs: The Motley Fool at AOL and Morningstar reports. Both are free.
My business partner started trading stocks in high school. He did so well that he had adult family friends give him tens of thousands of dollars to invest for them. In college, my friend continued to invest his money but didn’t always come up with winners. Turns out that Cabbage Patch Kids were a fad, unfortunately. But mistakes made early can be small and inexpensive and a great way to learn the ropes.
To start off PickyKidPix, I want to something that she can wrap her head around. I’m also not a person who likes to do extensive numerical analysis or create spreadsheets to pick companies. “Keep it Simple” works for Warren Buffet, I figured, so I make it simple for myself. Read more…