Pg. 1

Erin said, “Whats Investing again?” Dad said, “Investing means to give money in hopes that you will make even more money.” Erin said, “Oh yeah, I forgot.” Dad said, “So why do you want to learn about investing Erin you’re only 7,” Erin said, “If you start very young when you're older you'll have more money than if you started when you're 17.”

Pg. 2

Dad said, “Do you even know where we are right now Erin.”

Erin said, “We are in Georgia and it’s 4:17 pm.”

Dad said, “Even though you know the time you need to know more than the word investing to invest.”

Erin said, “Okay, but what should I know?”

Pg. 3

Dad said, “There are many things to know and you’re dad can’t say all of them but I can give a very broad overview.”

Erin said, “Will that be enough?”

Dad said, “My knowledge is good for now but not forever.”

Erin said, “That’s fine, I just want to invest!”

Dad said, “I understand you want to invest now but you need to learn and research about investing before investing Sugarplum.”

Erin said, “Sugarplum again dad.”

Dad said, “When you’re older you’ll think its funny.”

Pg. 4

Erin said, “Okay dad, so what are the things I need to know.”  

Dad said, “Well you should know Compound Interest”

Dad said, “Compound interest means earning interest on interest”

Erin said, “What in the world, I don’t get it.”

Dad said, “Uhm If an investor invests $100 in 20 years if they had a 7% return interest they will have earned $49,194.59 because their interest kept going up. Get it now Flanchow.”

Erin said, “Wow, that’s a lot more money than $100.”

Pg. 5

Dad said, “Next term Stock.”

Dad said, “Stock means you own a piece of the company because you put your money in their hands hoping for a higher return.”

Erin said, “Okay I understand this one, finally.”

Pg. 6

Dad said, “Here's a very important term Diversification.”

Dad said, “Diversification means to change how you invest and what you invest in.”

Erin said, “Oh, I never heard this word before.”

Dad said, “Now you know.”

Pg. 7

Dad said, “Know you now the terms.”

Erin said, “What’s next.”

Dad said, “The next step is to see if you can start investing.”

Erin said, “I hope I can start investing.”

Dad said, “Let’s go through a few.”

Dad said, “Master cash flow, set emergency fund, pay off debt, ensure student loans are current or paid off, etc. you’re too young to have these problems.”

Pg. 8

   Dad said, “Oh, wait I found some, set financial goals.” “This one you can do by yourself but remember to make them reasonable.” “Also, your learning about investing right now so you’re fine for now.”