Investing lessons from a 10 year old

Will you read a better rationale for investing this week?

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Kid pouring out coins from the money jar.

Image source: Getty Images

Usually, in this space, you'll get my thoughts on investing, business and the economy.

More often than not, they're inspired by a particular experience I've had, or observation I've made.

But not this time.

This time, the story is Casey's.

Well, Casey's son's, actually.

His name is Isaiah. He's 10.

And it's the story of why investing can be so powerful.

And why we invest, at all.

If this doesn't get your week off to the right start nothing will.

Over to Casey:

"Thought you'd enjoy a laugh.

"My 10 y.o got asked in class as part of a class discussion last year what he would do if he won a million dollars.

"He told the class he would spend it all on index funds.

"When asked why, he told his teacher that if he bought a million dollars of ETFs today, he would have 2 million dollars when he was grown up and could do whatever he wants."

Man, talk about a kid who gets it, right?

Casey went on:

"He was so proud to come home and tell me.

"Actually more proud of the reasoning.

"It started from him asking me why I'm obsessed with money because of all the pods I listen to and what I read.

"It became a discussion about how I don't want to be rich, I just want some freedom to be a home dad rather than a work dad.

"I like that he's picked up the freedom as the reason rather than the money."

Get it?

It's not about the money.

At least, not in the sense of wanting it for its own sake.

It's what it allows you to do.

Will you read a better rationale for investing, this week?

(In case you're wondering: No, you won't.)

See, Isaiah gets it.

Because he's a smart kid, but also because Casey has taught him well.

(And, as any parent knows, while the lesson came because Isaiah asked the question, it was Casey's example – and his son observing it – that opened the door.)

And we can learn from it too.

I have a simple question for you:

When it comes to investing, what's your "why"?

If you have a 'why' – and it's clear in your mind – I'm going to bet you're already well on the way.

Because once you know where you want to go, you can plan the journey.

And it'll make the plan easier to stick to.

Isaiah gets it.

Casey gets it.

Be like Casey. And Isaiah.

Set a goal. Work out how you're going to get there.

Then crush it.

Fool on!

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Motley Fool Take Stock

Young ASX share investor excitedly throwing hands up in front of savings jar.
Motley Fool Take Stock

So close, Premier. Let me fix it.

I really like this idea… with two exceptions.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Motley Fool Take Stock

Understanding the collapse of Silicon Valley Bank

I will tell you what I’m doing as a result of this.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Motley Fool Take Stock

Warren Buffett could have saved us from ourselves

A lesson in defending the indefensible, some good oil and a nod to the wisdom of one of the world's…

Read more »

man and woman discussing superannuation
Motley Fool Take Stock

Unscrambling the Superannuation mess

I’m going to quickly propose a better alternative.

Read more »

Woman on her laptop thinking to herself.
Motley Fool Take Stock

What would Warren Buffett do?

Warren Buffett's been very, very generous, for years, in sharing his expertise with anyone who cares to read or listen…

Read more »

Australian notes and coins surrounded by a calculator and the word super spelt out.
Motley Fool Take Stock

A first-principles look at the super changes

Here’s my view on potential changes to Super.

Read more »

Two couples having fun racing electric dodgem cars around a track
Motley Fool Take Stock

Where's the competition?

The best way for capitalism to create maximum value for society – and for shareholders – is when competition works…

Read more »

a woman wearing the black and yellow corporate colours of a leading bank gazes out the window in thought as she holds a tablet in her hands.
Motley Fool Take Stock

CBA's profit soars… and shares sink

The market doing what the market does.

Read more »