Childhood Memories: “The Little Investor!”
When I was just a wee child, it fell to my dad to teach me about money and investing.
Now, when I say “wee child,” we’re talking about a boy of some eight or nine years of age. Already then, my dad tried to imprint on me in the idea that the purpose of investing, was to put your money into something that would grow steadily over time, and ultimately would allow you get paid out income so you didn't have to work.
From a tiny seed grows a mighty sunflower... the core tenet of investing
He explained to me about these things called “interest” and “dividends” on stocks… and it seemed to me that it would be really cool to have pocket money coming in without having to bust my butt shoveling snow or running lawn mowers!
Somewhere just shy of my 9th birthday we went to the local bank, and I put all the change from my Piggy Bank into a savings account that paid 5% interest and I diligently continued to work my a little jobs and would put my money into that account rather than spend it on candy and sports cards and soccer balls like most of my peers were doing.
By the time I approached my 10th birthday, I had managed to accumulate about 1,000 Danish crowns, which was the equivalent of maybe $150 in 1970 money, so my dad introduced me to the next step of investing.
So we went on down to the bank and ordered a Danish "30-year Government Bond," which was going to pay me 9% interest, or the princely sum of 90 crowns a year!
To my 10 year old mind, it was basically cool as hell that I would be able to go down to the safe deposit box twice a year and clip a little coupon off a big sheet of things that looked like stamps, take that little coupon denominated as 45 Danish crowns to the bank teller and get cash for it! Without having to DO anything!
By most measures, what I'm sharing with you here made me a pretty strange kid. My friends — whom I soon enough learned NOT to tell anything — couldn't fathom why I'd rather do such a boring thing, when there was CANDY to be eaten, and models of TANKS to be built!
Regardless, I just kept saving my money rather than spending it. By the time I was 16, I recall having accumulated about 20,000 Danish crowns worth of government bonds. Which, in 1976 money, was equivalent to about $3000.
Sadly, that was pretty much the last time I was able to save money and invest it!
Whereas my dad gave me a really good foundation with money and investing, what he did not prepare me for was the reality that much of the time life actually costs more money than you're able to earn. And so, whatever dreams of "saving" you may have end up paying for broken car transmissions and roof leaks.
Those original investments did serve me well though! Along with the money from something we had in Denmark back then — known as a "childhood investment account" for parents — it was possible for me to leave Europe in 1981 without having a "rich uncle" to go to the United States to attend University and not suffer financially as a result of it. Where most of my peers had empty pockets, I had a bit of a cushion.
It has been almost 50 years since my first tentative investments. And even though it would be a wonderful thing to report back that I'd learned enough to now have a healthy investment portfolio, truth is that I have pretty much nothing to my name. But I did gain some wisdom!
These days, I'm investing in "the new frontier!"
I've traded in a snow shovel for a keyboard, and now I gradually build my little "portfolio" by using the rewards I earn from blogging to build my modest stake in this thing we call "Cryptocurrencies." Where that train is going to go I cannot say... but I sure hope it's an interesting destination!
Thanks for reading!
How about YOU? Were you taught about money and investing as a child? Who taught you? Do you have any good investing stories to share, from your youth? Comments, feedback and other interaction is invited and welcomed! Because — after all — SOCIAL content is about interacting, right? Leave a comment — share your experiences — be part of the conversation!
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Created at 20201002 19:28 PDT
0117/1344
Posted Using LeoFinance Beta
It's funny... I was never taught these things growing up - but given free reign to 'try anything out', give it a go...
That freedom stood me in good stead for life.
I also came to quickly realize that all financial instruments are rigged.
The best advice I listened to growing up was, 'if you're ever living beyond your means, either change your means, or change your life'
That's definitely a very wise piece of advice. I've seen lots of people end up in a heap of hurt because they were living well beyond their means, and they kept believing that "it would work out, somehow." Doesn't tend to...
I played monopoly.
Right now though, the rules are wiped and nothing is what it seems. Monopoly was so simple and innocent.
... somebody say, "Amen"
Yeah, the rules are wiped, allright. Color my cynical, but it seems like "work hard and get ahead" has been replaced by "cheat and scheme to get ahead."
Never had financial advice while growing up. It's a bit of sad experience (though I'm grateful to multiple other things) to not understand the realities of life before I became an adult. It's hard to live life in a survival state, life isn't just about job, bills, rents, but about being financially able to enjoy life better.
Through reading books, I realized the faults of my previous-generation family and is now trying my best to be financially educated and actively practice it.
Yes, it's quite hard to live in that "survival state" all the time... among other things because it leaves you feeling like you have few options, regardless of how well-intentioned you may be, and how much desire to change your situation you may have.
Part of my own financial education was definitely developing a sense of what my personal financial perspectives were about... rather than just accepting the greater societal "shoulds" as my own. Money, to me, has never been about having "stuff" or status... but about buying security and removing uncertainty from my world, to whatever degree possible.
I believe in this too. In this materialistic world and "acquired, have not paid, takes time to pay" culture, I prefer not to be a victim of falling into lifetime debts. I am still far from having security, but is working hard to be there :)
Your dad was a wise man, and looks like you've kept some of that...
My dad definitely had his moments, although he was not always so good at "walking his talk," often leaning towards gambling — both at the casino, and in high risk commodities derivatives.
@denmarkguy,
In my point of view,your father did reach you right.
Learning to invest from that age is simply nice. However, I never grew up with my dad but my mom taught me how to save and self discipline, she did not know about the stock exchange because I know if she did, I would have learnt from her.
Besides it's hard to save these days because expenses or problems come up everyday.
It's almost as if your pockets were leaking. Regardless we move.
The will to get better is stronger.
That's why I love to associate with the older ones because they have had the experience of life
Hi there @buttonn, thanks for the thoughtful comment!
At a somewhat later point in life I also got good investing advice from my elderly auntie; she was "self-made" and a keen stock market investor. Her advice was always to "stick to what you KNOW, and do it really REALLY well!" rather than trying to chase alluring high-flyer possibilities.
Although some of her wealth was inherited, that didn't come till later in her life and most of her financial security was her own doing.
Growing up, I have no idea about investing most especially if nothing to invest even a single penny. To live every single is a struggle.
How I wish someone educates me the power of investing at early age. But in my case, investing at early age is impossible coz even the food to eat three times a day are difficult for a big family, having 7 siblings with a fisherman father who wasn't able to finish grade school and a housewife mother who wasn't able to finish high school. No matter how was the hard times we had for life survival, we indeed survive!
My parents sends us to school at all means. They invested us to finish studies. That's the investments I am thankful for.
I know that even until now the life is hard and is always a struggle. Investment is not a priority. Day to day survival is a priority for a minimum wage earner with a family to support to.
Luckily, six years ago I started investing in an insurance company for my future preparation. I got my vul insurance. I am hoping I can continue to invest during difficult times just like now.
How I wish there is someone who is guiding me and teaching me to become a better investor,
Kudos to all investors!