Updates from Junior Wallstreeter
During our Financial Literacy Camps, campers were introduced to the Junior Wallstreeters Budgeting Envelope System (JWBES). The JWBES is broken down into three separate envelopes; KUCHANGIA (Donate in Swahali), KUOKOA (Save in Swahali) and TUMIA PESA (Spend in Swahali). This system is designed to assist the campers with money management. Campers were taught to divide their money into the envelopes according to their financial goals. For example, if a camper receives $20 per week from chores and/or gifts and has a financial goal of buying a new baseball bat, $10 would be allotted to the Save Envelope, $5 would be allotted to the Donate Envelope and $5 would be allotted to the Spend Envelope. This division of money allows the camper to be one step closer to purchasing a bat while also allocating money to their Donate and Spend Envelopes. This financial management tool also has long-term financial wellness implications such as learning the importance of patience and saving.
According to Matt Frankel, CFP, “the emergence of zero-commission stock trading is certainly a win for investors, especially beginner investors with limited capital.” With the elimination of commissions in combination with the education provided in our camps, campers are now purchasing their own stocks and ETFs.
Students and parents alike often ask about the “right-time” to start investing. Although there is not a one-size fits all approach, French Psychologist Jean Piaget published his theory on Cognitive Development in children. During the Formal Operational Stage (ages 11 and older), children can solve problems and plan for the future. On a personal note, I started my business, Black Wallstreeter Consultation Services, LLC., two years ago with my then 11-year-old son.
Let’s take a look at how to get started with investing.
Step 1- Decide how much to invest. Think about your goals and timelines and divide your funds accordingly.
Step 2- Open a Custodial Investment Account (if your child is under 18 years old). Under the Uniform Gift to Minors Act, a parent can open a custodial brokerage account for their kids. If you need a referral code, please let me know.
Step 3- Decide on Investment Options. It’s easier for children to relate to brands they know and love. According to the presentations given by Junior Wallstreeter while teaching others how to track their stocks using our Stock Tracker Notebook, he gravitates toward purchasing what he consumes. For example, since Kamari has a great appreciation for sports, he first considered investing in brands such as Nike and Under Armor. This strategy tends to increase engagement and can make investing fun.
Step 4- Track your Investments. By utilizing our Stock Tracker Notebook by Junior Wallstreeter, children can closely monitor their investments. With its convenience and portability, it puts the ease into easy.
Please visit us www.theblackwallstreeter.com to see a complete list of our Virtual Summer Camps, to learn more about our products and services or to make a donation.
Thank you!
Kevon L. Chisolm, Esq.
Executive Director, Jun