Sophie

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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