My 6 Year-old Daughter’s First Investing Lesson

July 5, 2015


Tonight, my 6 year-old daughter, Sophie, learned her first investing lesson.


Sophie: Dad what do those red and green things mean with your stocks?


Me: Red means the stock went down, and green means the stock went up.


Sophie: Red is not good!!!


Me: Not necessarily. Let me ask you, would you like to buy a toy for one dollar or two dollars?


Sophie: Uhm, one dollar!


Me: So if you wanted to buy a stock, would you like to buy it at a higher price or a lower price?


Sophie: Lower!


If Sophie, my 6 year-old daughter, can understand why a buyer of stocks should want stock prices to be lower, anyone can.


I’m proud of you, Sophie!


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