A 14 Year Olds Investment In Pm

MKFarm... IMHO, you are doing a wonderful job in teaching your daughter. She's already learned to work hard, manage her business, and create a good share of her own living. She now knows that effort is required in order to live, which puts her MILES ahead of so many adults who do not. To that you are now adding some interest in investing. I do not know you or your daughter, so I have no right or reason to criticize what you are doing. Therefore, I am not going to join in on the silly rant that seems to be in progress.

i mean lets be honest.

If mkfarm came on here and said her daughter was investing 1800 dollars in vintage baseball cards without having ANY FEAR if she loses her money - you all would be COMPLETELY against it

But since she's investing in precious metals instead, something you all are biased against, your praising her.

The principle of the conversation still is that a parent feels losing 1800 dollars is completely fine

don't praise an act because you are biased against subsets of that act

maineman - please answer:

you think its a great job acting as if losing 1800 dollars is nothing

I brought up the idea that I don't think its right to instill in a child mind that its perfectly alright to lose 1800 dollars in investing.

That leads to the future mindset of: "I can gamble a large amount of money away, and it will be perfectly fine."

What the OP is promoting is that one should not care if he or she loses a lot of money

The OP is trying teach the child about reward without risk - life would be a whole lot easier if everyone could walk into a casino and spend thousands of dollars without caring if they lose all their money.

OP, why invest if losing a huge amount of money won't matter

Investing in PMs is supposed to protect value. If losing 1800 dollars is perfectly ok, then there is no need to invest.

Not only is the entire logic flawed (investing to protect money when one doesn't care about losing money), but the mindset of losing 1800 dollars is "fine" is why children today do not know the value of a dollar, and lays out the foundation for future greed and carelessness

I disagree with you having her put ALL of her money into an investment. What is that teaching her? Not to mention you are guaranteeing it for her, she won't get that in real life either.

Maybe you buy all the things your kids want, but my parents made us pay for anything we wanted:
-College
-Car
-Insurance
-Gas
-Cell Phone
-Going out to eat
-Movies
-Any clothes above Christmas/Birthday

Unless you're spoiling her and buying all of those things for her, I would have only suggested investing maybe half as a life lesson.
But it is really cool you are teaching her those things.

Not to mention I'm horribly confused

You're saying she owns her own business, which according your math yields 18,000 dollars in profit a year ("1800 is investing 10% of her money")

My question
1) If she has a business (which she doesn't) why was she saving 1800 dollars in her room. For a 14 year old who''s making 18,000 dollars a year, I'm a little confused why you said she's saved up 1800 total dollars in her room. I mean someone who makes money from a job doesn't save up 1800 dollars doing "thrifty" things. Surely she'd have much more than 1800 dollars if "her business" is doing as well as you claim

And if you meant that the 1800 dollars is what she has left of her profits, your saying she spends over 16000 dollars a year....

so something doesn't add up

First you say she's saved up 1800 dollars total - 1800 total dollars that she owns

Then you give some story about how she has a business that yields 18000 dollars a year

So which one is it?

I think its your own farm, and she works for you. 18000 dollars of your farm profit may be from her work, but I don't believe she alone has a farm business (1st off because its not legal at 14) that makes 18000 dollars in profit


Sorry, your story just doesn't add up

Wow, looks like I changed the mood on this post. At least people agree with my logic :)

She is 14, and already will have 1800 in Pm's. I think it is safe to say I wish I was that smart at 14. And she only has about a 25 year average advantage on most of us, and that average may be conservative....

Two grand put into Pm's a year from 14 to retirement would be some stash, and I would bet everything I got vs. the naysayers that she will turn a huuuuge profit when she cashes it in, if she chose to take that route. End of story....