How to Instill the Investor Mindset In Your Children

In this episode, Tom and Michael share about their very first investments and some fun tips on how to get your children thinking about investing at a young age. --- Michael: Greetings, and welcome to another episode of the remote real estate investor weekend wisdom edition. I'm Michael album and today I'm joined by   Tom: Tom Schneider.   Michael: And today we're gonna be talking about our first investments ever. And some things to think about talking with young people with kids about how to get started in investing, and how we were able to dip our toes into the world of investing and arrive where we are today. So let's get into it.     Alright, Tom, so I am very curious to hear from you. How did you get your start with investing in general doesn't have to be specific to real estate. I know your story. You got started after college with real estate. But is that where your story begins?   Tom: So my initial foray into any type of investment, it was a grandma kind of a deal. So grandma set up a brokerage account. I'm not like a trust fund baby, but definitely super generous of grandma to set to buy some shares of stock way back in the day. So when I was cash, it might have been like, first grade, I think for like birthdays. She just bought like a share of Disney or something that she thought that I would like, and it was…   Michael: Yeah.   Tom: …so fun. Again, not wildly high amounts. But I remember my grandma buying me Disney and then like second or third grade, periodically pulling up the newspaper. For those who don't know what it is just getting it to looking at like the stock section. And then like, looking to that stock or something and just seeing it move. It was really eye opening of Oh, wow, I just made whatever, a half a percent. And I didn't have to do anything. I think it was some early of passive income and investing so   Michael: And so is that what you eventually sold for the downpayment on your current house?   Tom: I did not know it wasn't from the down payment on my turn. But are you ready for a choosy beggar comment?   Michael: Absolutely.   Tom: Okay, so this is the like, choosy beggar comment. I am like, you know, again, so grateful, like what a cool thing to do for a kid, but she didn't reinvest the dividends. So like, when I like ever got old enough to check on the account, there's just a bunch of the money, like whenever there was a dividend or like, it would just sit in cash. So it's like,   Michael: Thanks a lot Grandma.   Tom: No, no, no, choosy a beggar choosing beggar. But it was a good lesson that I mean, what it did little math exercise for to go back and Okay, if this had just been reinvested as a within to the stock instead of just taking the dividends into their cash position. Anyways, I'm derailing and, and being a choosy beggar, but it No, I'm not a choosy beggar. But anyways, Okay, done talking to them, and word vomit.   Michael: What a great point to make. Because if that, I don't want to go so far as to call it a mistake. But if you hadn't learned that lesson, at that point in time, you may have never known like, Oh, this is a thing I should be doing, or this is good or bad. So I think that's great. And probably one of the most inexpensive lessons you could learn. And so I you know, hat off to your grandma for teaching you two lessons for the price of one.   Tom: Yeah. And to bring this back to real estate investing. A great example of this is okay, you collect your rent from your property. And unless you're in a position where you're living off of that money, which I assume a lot of people are not, is to be long term greedy, and save that money that you're getting from your rent collected and roll it into buying a new property. reinvest the dividends, man reinvest the dividends? All right, Michael. Good. Go ahead. What was your initial entry into any type of investing?   Michael: Yeah, so very similar story for my 12th birthday. My dad got me a couple of shares of GMC stock. A