SEARCH

Forgot password

20830

Captcha:

Community Journals

Nov 17, 2015 Anne Sta. Ana-Babiera
Lord, I want to thank You for giving me wonderful blessing,...
Read more...
Jan 29, 2015 Nicole Asombrado
The first thing that came to my mind when I...
Read more...
Jan 29, 2015 Nicole Asombrado
The first thing that came to my mind when I...
Read more...
Jan 29, 2015 Nicole Asombrado
The first thing that came to my mind when I...
Read more...
Jan 29, 2015 Nicole Asombrado
The first thing that came to my mind when I...
Read more...
Jul 10, 2014 Guest
Whoa i like your e4babae4babae9ƒbde6œ‰e7š„e6œbae4bcšefbcŒe6Ÿ90e4ba›e4babae4b8bbe5Ša8e6”bee5bcƒe4ba† | Hello world ,...
Read more...
Sep 26, 2011 Antonette Villanueva
Just got a copy of Raising Pinoy Boys. Husband wondering...
Read more...

Latest Updates


Events / Announcements

Financial Compatibility on ANC On The Money

For the first time on ANC On The Money my husband Marvin and I will appear together to discuss Financial...
Read More



I'm now on Twitter!

After quite some time I finally decided to use this platform to deliver my message. I'm now on Twitter. Chat...
Read More



Show all Events


Sneak Preview of the Book


Buy the Book.

Featured Article

Apr 06, 2015

Why should our young kids be invested in the stock market? (Explain to me as if I were a 7-year old Series #2)


.

Because we know that the stock market gives the best returns over the long term, we started investing the money of our children (angpaos and other cash gifts received) since they were babies.

Stocks for the Long Run:

In 1994 Wharton Finance professor Jeremy Siegel wrote his landmark book entitled Stocks for the Long Run. Twenty years after, he came up with an update, which included the financial crisis that shocked the whole world in 2007-2008. The update further confirmed his findings from his study of historical returns of stocks, bonds and gold that date back to as early as the 1800s!

Among all asset classes, the stock market provides the highest return in the long run. (Click link to see book sample.) 

Wharton Finance Professor Jeremy Siegel and his landmark book Stocks for the Long Run
Wharton Finance Professor Jeremy Siegel and his landmark book Stocks for the Long Run

This is the reason why we advocate that everyone should have stock investments, because we all have long-term needs that we have to prepare for. Unfortunately, some of us go through our lives not preparing well in advance and before we know it, we hit our retirement age.

Years ago when my youngest son Anton was interviewed about stock investing at the age of 15, I was thrilled to hear him say that he’s already saving and investing for his retirement! (Watch the episode by clicking the link Stock Investing 101 - ANC OTM). It’s in minute 12:00) 

We only want the best for our kids:

All parents want the best for their children. To the best of our ability, we’d do everything humanly possible to give them the best future. We safeguard their health, give them the best education, best everything we can afford. We rush them to the doctor at the first sign of fever, something we, their parents, wouldn’t do for ourselves. We enroll them in the best schools during and even after school years to make sure that they get the best opportunities all enrichment courses can offer. When it comes to their money, we’re sometimes way too careful, that we just keep them in their savings accounts. But are we doing them a favor with this?

The compelling reason why our kids should be invested in the stock market:

One day, Anton (the same son in the video) who was just in his early grade school years, was discussing with me his “investment strategy” after we had our breakfast. Okay, it was not a formal meeting complete with power point presentation and graphs. It was just a typical mother and young son conversation. You know how it is when your child feels that he stumbled into a discovery and is eager to share it with you? That’s how it was.

Image 02

Let me share our conversation with you.

Anton: Ma, I want to put almost all my money in the stock market! 

Mama: Why? 

Anton: Well, you and Papa always say that the stock market gives the highest earnings in the long run, right? That means if I put more money there, I will earn more money! 

Mama: Well, yes. But don’t you think it will be too risky for you. Remember Mama showed you how the prices of stocks go up and down, up and down? What if the stock market goes down? You might get sad if the next time you update your Balance Sheet, you will find your total assets go down. 

Anton: Well, if the value of my stocks go down, my lifestyle will not change. It is when the value of your and Papa’s stocks go down, that my lifestyle will change, right?

After hearing his argument, I thought I just heard the best articulation of why parents should invest their children’s angpaos. other cash gifts and earnings in the stock market while they’re still very young.

He was right! It was our responsibility to provide for him. It was our lookout to cushion ourselves well against stock market swings. His risk appetite was definitely bigger than ours because of age and other circumstances - i.e. he was still our dependent while we were middle-aged parents taking care of three dependents.

Action Items:

Summer is here and I urge all parents to get your children to start investing in the stock market. Surprisingly, even affluent families have their children’s money just parked in the savings accounts, time deposits and other low-income financial instruments, even if they could easily afford to provide for their children well into their college years. Enroll them not just in the usual swimming, art, acting, martial arts, etc. classes this summer. Include some financial literacy workshops. It’s a thrill for me to hear feedback like these: “Rose, I attended your workshop last summer and my two year old now has an investment account!” “Hey, right after the workshop, my four sons are now stock investors!” “My daughters now think twice before spending their money because they know they can grow their money!”

So this summer, tick off “Get my kids invested in stocks (whether directly or through funds)” in your to do list, and have them maximize the highest returns in the long run from this asset class!

 

 ***************************

ANNOUNCEMENTS

  1. I will give a talk together with Salve Duplito and Doris Dumlao Abadilla entitled Demystifying Media to Chartered Financial Analysts on April 6, 2016 at 6:30 pm at the Milky Way in Makati.
  2. I will speak at the Financial Wellness Program of Security Bank on April 27, 2016 at 10 am and 2pm.
  3. Marvin Fausto will speak at the FMAP’s Investment 101 for Millennials and their parents also on April 27, 2016.Poster
  4. I will speak at Kidzania about Financial Literacy on May 7, 2016 at the Kidzania Parents Lounge at 9:30am. This is open to all interested parents. There is no talk fee, just pay the usual entrance fee (with or without your kid) in the morning and join our conversation.

Rose Fres Fausto is the author of bestselling books Raising Pinoy Boys and The Retelling of The Richest Man in Babylon (English and Filipino versions). Click this link to read samples - Books of FQ Mom Rose Fres Fausto. She is the grand prize winner of the first Sinag Financial Literacy Digital Journalism Awards. Follow her on Facebook and You Tube as FQ Mom, and Twitter & Instagram as theFQMom.

 ATTRIBUTIONS: JeremySiegel.com, colourbox.com, shutterstock.com, all-free-download.com

E-mail

This is a required field but will not appear on your comment.

Write a comment
Enter Code

6051
You may also add us at or

© Copyright 2010 All Rights Reserved. Raising Pinoy Boys