Rachel’s story illustrates the importance of saving and investing, but this is just one example of an action that can ease your teen’s entrance into the world of financial independence. Financially Independent Teensincludes many stories as the book covers the basics of what every young person should learn about money, budgeting, credit, investing, their first job, entrepreneurship, and how to plan for a successful financial life after graduation.
“Rachel knew for a long time that her parents would not pay for certain things such as a car. When she started babysitting at age 12, she decided to always save at least 50% of her earnings so that she could buy a car when she turned 18. Rachel’s father did some small investing in the stock market, usually with a stock club, and he subscribed to the Wall Street Journal. Once Rachel started saving, she was able to attend some stock club meetings with her father. The advisor would recommend a stock and give its expected high value at which point it was recommended to sell. Rachel would read more about the company and decide whether to invest in it or not. The first investment she made was in a soft drink company (later bought by Coca Cola) that traded at $2.30 a share. The advisor expected it to go as high as $6 a share. After 6 months it reached $5, and she sold. She continued reinvesting the money in new stock picks until she graduated from high school, at which point she had enough money to buy a new car
Check out our books on financial independence at https://parentsfin.wixsite.com/website/books or our books Raising Financially Independent Children, Financially Independent Teens, Financial Essentials for Couples Financial Essentials for Women by Women and Financial Essentials on Amazon.
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