I started teaching summer math camps in 2002 for elementary aged kids.  I must admit the reason for teaching them was selfish.  As a former classroom teacher who emphasized hands-on learning I wanted my two boys to be exposed to the activities I taught my 3rd, 4th, and 5th graders.  My boys are older now (13 and 15) but they still come with me when I teach the camps.  The reasons are different.  Working with small groups of kids, Nathan, my oldest earns community service hours and Ryan earns a litte extra cash.  So it was normal for both my boys to be sitting in the back of the room this summer when I started teaching my money management camps.

My husband, John, and I have always talked to our kids about money.  And we designed KidsSave while our kids were watching.  So they already know a lot about saving and spending money and they’re pretty good at it.  I like to pat myself on the back knowing they have savings accounts that are growing and a Vanguard 500 Index Fund that they contribute to when their KidsSave Account reaches a certain balance.  So I was a bit annoyed with myself when, after camp one day, Ryan approached me about the stock market.  That it was Ryan didn’t surprise me.  Nathan approached me after class also, but he was fascinated with putting $100 into an account each month hoping to earn 6% annually and then waiting until he was 65 to pull it out.  Ryan is my little risk taker and he wanted in with the stock market.  The part that annoyed me was that with all this money management stuff I’ve been doing over the years, I never really talked to the kids about owning individual stocks.  How could I miss that one?

So apparently during the talk to my campers about ways to invest and earn passive income the little ears that pricked up were those of my son.   He wanted to invest $500 in Chipotle.  I have always read that kids can be pretty good predictors of how individual stocks will do since they pick companies that appeal to them which means these kids will be buying their products.  And Chipolte, well Ryan LOVES Chipotle.

Before I would let him invest I asked that he read The Motley Fool’s Investment Guide for Teens which he did and we discussed.  Our next step was to open a custodial account at Schwab where he could then be able to buy his shares on line.  I thought this would be the perfect opportunity for him to talk one-on-one with a financial consultant so we set up an appointment to open the account.  I was proud that when she asked him the ticker symbol and what he thought the shares were trading, he knew the answers.  What he didn’t know was how Chipotle had done over time and that the rating that Schwab had given it was a ‘D’.  His eyes got pretty wide when he saw that big ‘D’.  The consultant tried to assure him that just because it wasn’t rated high didn’t mean it wasn’t a good buy.  But I’m not sure that convinced him.  And although it’s been almost a week since our visit, he still hasn’t asked to buy the shares.

In the car ride home we talked about some of the reasons Chipotle may not be doing well.  It was hard for him to think that maybe others didn’t like it as much as he did so he went with “it’s the economy, stupid” .  And it very well may be.

He’s now considering other areas that may be better at this place in time to invest and I’m not sure where this will go.  The account is ready for him to make his first move.  And I’m pleased that even with his risk-taking tendencies, he is considering his options.  After all, $500 is a lot of hard earned money.