{"id":1926,"date":"2010-05-23T10:45:51","date_gmt":"2010-05-23T17:45:51","guid":{"rendered":"http:\/\/sackrider.org\/?p=1926"},"modified":"2025-06-15T06:07:25","modified_gmt":"2025-06-15T06:07:25","slug":"if-they-had-invested-650-47-i-would-have-20000","status":"publish","type":"post","link":"https:\/\/www.sackrider.org\/wordpress\/if-they-had-invested-650-47-i-would-have-20000\/","title":{"rendered":"If they had invested $650.47, I would have $20,000!"},"content":{"rendered":"

My son,\u00c2\u00a0Zander\u00c2\u00a0(6yrs old) asked me this morning about Google Finance. \u00c2\u00a0He is\u00c2\u00a0fascinated\u00c2\u00a0by the\u00c2\u00a0Internet\u00c2\u00a0and often watches over my shoulder while I’m surfing\/working\/etc (sidenote\u00c2\u00a0for Dad’s – they are ALWAYS watching you on the\u00c2\u00a0internet\u00c2\u00a0– keep that in mind!). \u00c2\u00a0When he asked what Google Finance was, I replied “this is an investment website, son. \u00c2\u00a0I’ll explain it to you when you are older.”<\/p>\n

Then I thought about that. \u00c2\u00a0Zander\u00c2\u00a0seemed to accept that answer, but it bugged me. \u00c2\u00a0When did my parents tell me about investments? \u00c2\u00a0I don’t recall ever being taught about investments. \u00c2\u00a0I don’t recall ever being taught about savings either. \u00c2\u00a0I’m not saying there was never a conversation, only that it wasn’t part of the culture growing up. \u00c2\u00a0I want savings, investment, and financial planning to be part of the culture for my children so they aren’t living paycheck to paycheck when they get older.<\/p>\n

I decided that 6 years old isn’t too young to learn about investing. \u00c2\u00a0I\u00c2\u00a0explained\u00c2\u00a0that companies need money to grow the business. \u00c2\u00a0I went on to explain that the graphZander\u00c2\u00a0asked about was showing the price over time, that the low points were where the price was lower and the higher points was a higher price. \u00c2\u00a0He listened and even asked questions, like “why do people buy shares”. \u00c2\u00a0I showed him that over time the value of a stock can go up significantly. \u00c2\u00a0As an example I told him\u00c2\u00a0“If my parents had purchased 10 shares of IBM when I was born, they would have paid just under $200” (history on Google only goes back to 1978, but close enough).<\/p>\n

“The stock has split three times since then, once as a 4:1 split, and twice more in a 2:1 split.” I went on. \u00c2\u00a0“So today, I would have 160 shares for those same 10 shares [10 x 4 = 40 x 2 = 80 x 2 = 160]. \u00c2\u00a0At\u00c2\u00a0todays\u00c2\u00a0price,\u00c2\u00a0thats\u00c2\u00a0about $20k.”<\/p>\n

Then it hit me. \u00c2\u00a0If my parents had invested $200 in 1978 for me, I would have $20k today! \u00c2\u00a0Well… wait, I thought what about inflation. \u00c2\u00a0I mean, maybe $200 in 1978 was $20k in today money. \u00c2\u00a0So I checked using an online\u00c2\u00a0inflation calculator<\/a> – and it turns out that $200 in 1978 would be about $650.47 today. \u00c2\u00a0I get that $650.47 isn’t a small amount of money – but it ain’t $20k either! [the use of slang here is intentional for emphasis].<\/p>\n

Zander\u00c2\u00a0asked, “why don’t you ask them to buy it for you now daddy.” — kids are\u00c2\u00a0soooo\u00c2\u00a0cute, right?<\/p>\n

“Zander, its too late now”<\/p>\n

“But you always tell me its never too late for me”<\/p>\n

“That’s true,” I\u00c2\u00a0chuckled “but that was 32 years ago.”<\/p>\n

Zander\u00c2\u00a0was quiet for a second, then responded very matter of fact “Won’t you live another 32 years?”<\/p>\n

Uh… yeah. \u00c2\u00a0I hope to. \u00c2\u00a0Wow… out of the mouth of kids. \u00c2\u00a0So… my goal over the next couple of years is to start investment accounts for all three of my children with no less than $650.47 in them.<\/p>\n","protected":false},"excerpt":{"rendered":"

My son,\u00c2\u00a0Zander\u00c2\u00a0(6yrs old) asked me this morning about Google Finance. \u00c2\u00a0He is\u00c2\u00a0fascinated\u00c2\u00a0by the\u00c2\u00a0Internet\u00c2\u00a0and often watches over my shoulder while I’m surfing\/working\/etc (sidenote\u00c2\u00a0for Dad’s – they are ALWAYS watching you on the\u00c2\u00a0internet\u00c2\u00a0– keep that in mind!). \u00c2\u00a0When he asked what Google Finance was, I replied “this is an investment website, son. \u00c2\u00a0I’ll explain it to you […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1926","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/posts\/1926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/comments?post=1926"}],"version-history":[{"count":3,"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/posts\/1926\/revisions"}],"predecessor-version":[{"id":2723,"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/posts\/1926\/revisions\/2723"}],"wp:attachment":[{"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/media?parent=1926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/categories?post=1926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sackrider.org\/wordpress\/wp-json\/wp\/v2\/tags?post=1926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}