How this reaction from my three children really surprised me

How this reaction from my three children really surprised me


4 months ago I started with the first financial lesson for my three children. The other day I asked them something related and their response surprised me.

If all goes well this week, we’ll have the prototype investor tool ready. It won’t have all the features I have in mind and it will be basic but that’s why it’s called a prototype. The milestone will be to offer all the data of one of the most important investors that I have: my three children.

Mid-March I made them a proposal

. We made an investment of 140 euros among the 4. They put 70 euros and I the rest. The 5-year-old put in 5 euros and the “older ones” shared the rest of the investment. With your money I invested in it product that generally gives the best return on investment. After 4 months we will calculate the profit for everything that has been sold. There is still an inventory of this investment, but hopefully your investment has already doubled.

Last weekend, I told you that I was going to pay you the first part of your benefits. At the same time, I also asked the following question. “Do you want me to give you some or all to buy you something?” His response was as follows. “No, we want to reinvest everything.” The little one might not have been bothered by buying Lego or Playmobil to play with, but since he generally agrees with what the elders say, he simply gave a confirming look as if he was 100% clear on what this means …

I sincerely hoped that at least some of them wanted to reinvest it again but that was going to be all, I did not expect it. They like to buy things with their money, so I assumed this time around I would go for the quick price as well. They understood a fundamental thing. “The more money I put in, the more I can earn.” So for them it now makes perfect sense that they reinvest all the money including the profits.

There’s a lesson waiting that they haven’t learned yet. They take it for granted that things are going to be okay, but that is not always the case. Investments can go wrong and instead of making a profit, you have losses. This in their world is impossible because I manage it and they take it for granted that an investment can only grow.

Now that they will have 70 euros instead, 140 euros to invest, I wonder what they should invest their money in. It might be Lego or Pokémon. In the latter case, the sale may take a while to arrive but the waiting time may be worth it. Right now, for example, there are good opportunities to buy low-cost graduation cards and make a good profit. At Amazon we only sold four graduated cards this month which made us earn 600 euros clean. Perhaps this month we will not fully achieve the results achieved in the previous month, although it is only a little.

We will continue to invest these 140 euros and we will see how they evolve.

Stay tuned.

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