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Pastimes : Children and Investing -- Ignore unavailable to you. Want to Upgrade?

To: Patricia Meaney who wrote (3)	11/2/1998 11:14:00 AM
From: Early Out	Read Replies (1) \| Respond to of 22

Patricia, Sounds like you are doing a great job with your children, it's very impressive that your young daughter could make the connection between company and product. That's clearly a direct result of your early teachings with investing, and something I hope to help my children with when they are that age. Your comment about capital gains brings up a couple of questions: 1) If I have an account in my children's name, and I sell a stock for a profit within the account, does my child have to file a tax return? It sounds like it. Can someone point me to some good links regarding this topic? 2) What about stocks that pay a dividend? I believe as long as they don't earn more than $400 per year in dividends and interest they don't have to file, is that correct? Thanks -jsc

To: Patricia Meaney who wrote (3)	11/3/1998 11:31:00 AM
From: PatiBob	Read Replies (1) \| Respond to of 22

Our 7 & 5 year old have their own accounts, mutuals that our investment banker suggested. We fund them thru our checking account and each month both accounts have $100. added to them. I was impressed at how their mutuals were doing (a bit better then the ones I picked). He also suggested that on their birthdays we up the amount, he gave us a scale or percentage chart to use as a guide, sorta grow with them. When the statement comes in, they each get to input their own shares in their portfolio and print out the activity report and see what's happened with their money. We also have a 21 year old, his savings plan was started in a Credit Union when he was younger and switched over to mutuals a little too late. We pay for his college and his flying lessons as long as he maintains an A/B average. He also has a full time job in order to pay what bills he has. I was actually surprised to find that he was contributing to his investment buy taking out $40. a month. That's in addition to his 401K contribution at work. It's not much but it's going to help him learn to save his money instead of spending it like his friends do. We learned a lesson with him (they say your first child is usually the one you make your mistakes with) that we don't want to repeat with the other two. I think that starting out teaching kids to save money at a young age will help them to save as adults. I have known so many parents that will not talk to their kids about money because it's "too grown up" from them to understand. When do they think they should start? PB