How to use Starbucks to teach good munny habits:
Two weeks ago I purchased 20 shares of Starbucks for a seven year old child client that had expressed an interest in investing. His mom took my young client to his new investment (Starbucks) after school. Mom explained that he was now a partial owner of the company. As an owner, she shared that he could help his investment grow by consuming Starbucks products. The young lad took this advice to heart and immediately encouraged his grandparents to buy Starbucks coffee, and mom left the store with a pound of coffee. The next day when he and a friend were in the car, my client explained to his friend that he owned 20% of Starbucks. Everyone had a great laugh. He and his parents have now committed to save a dollar a day and add it to his investment account. Even though he doesn’t own 20% of Starbucks, he is on the path to financial success and good money habits. A lesson we should all learn at age seven.
P.S. Investomons, If you are just getting started you can open a mutual fund account in a S&P 500 fund. The S&P includes Starbucks, Apple, Disney, Macy’s, ect. This can help you connect your consumption patterns with good money habits. I also like the Monetta Young Investors Fund. Your child will receive a small gift upon opening an account. Plus, monthly statements and a fun and informative newsletter.
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