A Brilliant Way to Teach Teens About Investing

These parents came up with a fun, cool, unique, powerful way to educate their kids on the world of investing. Love it!

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I had a really cool call a few weeks ago from a fan of our videos. He and his wife had done something with his two kids to teach them about investing that was very clever and truly unique. His kids, a boy and a girl, are in their teens. They gave the kids $2,400. Theirs to keep if, if, they gave them back a reasonable investment plan within two weeks.

But there were rules. They had to invest a third—$800—for long-term growth in a prudent fashion. Well, who would define the word “prudent?” The kids would, after using ChatGPT and any other sources they wanted to develop their case. The kids then, in two paragraphs, would explain to their parents why they’re investing the $800

that way. They could either approve it or send it back to the drawing board. Oh, I should mention, they had to invest in publicly traded securities and they had to make two investments of $400 each. With the second third of the money, they were instructed to research more aggressive investments and select two again — $400 each — that they felt would outperform traditional long-term investments, like index funds,

over the next five years. Finally, and I LOVE this part, very unusual. With the last $800, they had to make a case for two investments they thought would bomb, would perform poorly. Go find the next Blockbuster Video, essentially. Well, the teens threw themselves into this assignment. Before the deadline had even arrived,

they’d made their full presentation, it was approved, and the portfolio has been established. An index fund and a bank stock for the first $800. $400 into a Bitcoin ETF and some Robinhood stock for the second $800. I’ll tell you what they bought for the “Try to lose the money” third in an upcoming video.

What a great way to educate your kids, to get them thinking and to get them researching. Fun and enlightening. Of course they’re now following their investments extremely closely. Of course they’re now talking about all of this a lot. They’re telling their friends about it. And of course, they already want to make one change. That $2,400 could end up being the best investment those parents have ever made.