13. Ideas for Working With Limited Funds

Not everyone has $5,000 to invest in this project, but that doesn’t mean that you can’t get started.

Kids get a lot of money over the course of a year, but very little, if any, is long-term goal orientated. Some kids may know that money is being put away for college, but that’s fairly ambiguous to them. They don’t see it, they don’t realize how much college costs, so it’s something they may be aware of, but have no control over.

Some kids have a savings account they use to purchase the more expensive items they may want, i.e., electronic games, iPods, iPhones and who knows what else. With one purchase, most, if not all, of their savings evaporate and they start saving again. It’s like chasing yourself around a tree.

This project is about having your grandkids be aware of money, of earning it through proper and well thought out investments.

However, aside from investing, they also need to learn the basics:
  • Savings accounts,
  • Checking accounts,
  • Balance their checkbook,
  • Manage debt,
  • Pros and cons of credit cards,
  • Differentiating between want and need,
  • Creating a financial plan.
  • They need to learn how to open, navigate and use an Internet trading account.