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start with compounding value and lead into money management using portfolios, risk/reward, logging their actions and finally mental discipline. If you actually go into trading then that is a another discussion altogether. if you cant get past the compounding subject then restart until they get it. I'm just saying.
"We are coming up on the first year anniversary of trading her account. She is up money but has shown no interest in drawing her 20% in earnings out to spend, preferring to leave the money in the account, even though I know she desperately wants a computer or an iPad and even though she has been told she can draw from the account to get it. This is an encouraging sign of a bit of a delayed gratification mentality."
That reads to me that your daughter knows the power of compounding interest. Smart moves for a bright lass, so admirable.
If I was as smart/prudent as your kiddo, when I was her age, I'd be way better off at this point. Heck, I suspect many of us would be.
They tell the story that in the old days in Osaka the merchant families would set a young male child down on the tatami and place a candy in front of him, slightly to the left, an abacus to the right. If the child went right for the candy, they would ship him out to apprentice at some other place. If he went for the abacus, they would keep him at home and groom him to carry on the family business.
Brexit was the subject of dinner table conversation. We usually do not talk current events or politics at dinner, but the older girl is getting a lot of input on these things at school, so it is becoming more possible to do so.
We talked about the drop in the Pound and then the rise in the Yen. So we asked her why would the Yen rise when the Pound falls, and then why would the Japanese stock exchange fall when the Yen rises? She came up with answers based on historical associations.
It started out as a discussion of realistic expectations for what an entry level worker can spend per month, fresh out of college. I pointed out that the really rad cars a lot of young guys are driving actually consume more than half of their disposable monthly income.
Then I told about the first thing my father ever said to me about money: "The minute you drive a new car off the lot, it loses 10% of its value."
That was a shocking idea when I first heard it. The children were shocked by it last night too. It seems unfair.
I *wish* I was raised by a family that wanted their kid to be financially free in a wise and fair way. Here I am 3 decades later waking up and noticing how behind I am. Imagine the kids are thought from a young age to save and trade for long term without relying on the services provided by corporations and institutions and/or the idea of retiring. Good job Suko!
Why not propose that rather than drawing on principal, to draw on dividends, interest, capital appreciation. Then maybe the parents can match the draw against the earnings.