The unexpected coronavirus isolation period is sending chills down the spine of many parents dealing with bored children and college students at home. We’re here to help. April happens to be Financial Literacy Month and the April issue of the AAII Journal has several articles on the topic. Now is the perfect time to introduce children and young adults to skills, such as investing, that aren’t often covered in class. This week’s digest highlights two new articles that focus on what you can do to get your family members started.
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Helping Kids and Grandkids Become Investors |
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When learning any skill, it is best to start young. Investing is no different. Investors who start young generally have the flexibility and time to take on risk and recover from their money-losing errors and sidestepping the following common mistakes can help improve the odds of success. We can’t force our kids and grandkids to be excited about investing, but we can be the source of information and motivation. Craig Israelsen provides both in this article. If you feel it can motivate your kids and grandkids, please share this article with them.
Some of the topics covered include:
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How age, savings rates and returns affect wealth
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How to start investing and find the right option for your family
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Resources and contact information of popular investment service companies
Experienced investors have a unique opportunity to help shape their kids and grandkids. As a parent and/or grandparent, you can teach your family members important financial lessons—and you should. These lessons can leave a positive mark on your family for decades to come.
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How AAII Members Help Kids and Grandkids Get Started With Investing |
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AAII has started an initiative to give AAII members such as yourself a chance periodically to talk about their investment decisions and challenges. Recently, we surveyed members about the type of advice they have given to a child or young adult who is new to investing. In this article, AAII staff reports on the responses that members submitted regarding how they have helped first-time investors.
Some of the questions that members discussed include:
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What advice would you give to a child or young adult who is starting to invest?
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What specific investing advice do you wish you were given when you were starting out?
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What type of investment do you think a young person should start with?
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What resources would you point a young investor to?
Though there was variance in answers, AAII staff saw many similarities. A common refrain heard was the importance of starting early and being a consistent saver.
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Member Question
The CARES Act suspends required minimum distributions (RMDs) for 2020. If you are retired, will this impact your withdrawal strategy?
A) Yes
B) No
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Be sure to vote on this week’s question for the opportunity to offer your insights on our open-ended question. |
Previous Question’s Results
The Federal Reserve announced on March 23 new measures to shore up the economy, including unlimited purchases of Treasury and mortgage securities. Do you agree with the various actions that the Fed has been taking in response to the coronavirus pandemic?
Yes : 56%
Unsure : 23%
No : 21%
Poll results are as of 9 a.m. (Central) on Monday. 2,646 respondents.
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AAII Survey: What Members Think About the Fed’s Coronavirus Response |
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The spread of the coronavirus is having significant implications for businesses and economies around the globe. In the U.S., the Federal Reserve has taken actions recently in an effort to minimize the trauma. However, these actions have been met with mixed reactions. We aimed to see what AAII members think about the Fed’s response to the coronavirus pandemic. More » |
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AAII’s First-Ever Live Town Hall Event! |
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 Join us tonight for AAII’s first members-only Town Hall video event. The webinar takes place Tuesday, April 7, at 7:30 p.m. CDT. Free registration allows you to sit in on a panel of AAII’s financial analysts, who will provide their take on the current market and insights on how individual investors should proceed. They’ll also answer as many of your questions as they can in this 60-minute event. More » |
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