A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Monday, May 02, 2005

Investing for Kids

Today I put in an order to buy $146 worth of Microsoft for my sons' accounts. I am trying to take steps while they are still young (ages 8 and 9) to teach them how to grow their money. It has been a lot of fun.

My wife and I give them an allowance each week. They get $1 for each year of their age (the oldest gets $9.00 per week and the youngest gets $8.00 per week). We require them to pay tithe (10%) and put 25% in each of their long-term and short-term savings accounts. They get to spend what's left.

Once they accumulate enough in their long-term accounts, I pull it out and invest it for them. I'm hoping that by doing this, I will be teaching them how to use their money wisely. Time will tell I guess.

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