Investing lessons from a 10 year old

Will you read a better rationale for investing this week?

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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.

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