This is my update number 4 on my Kid’s journey to Financial Success. My idea behind this update is to show the parents around the world on how to setup for your kids for success and provide them financial education so that they can be financial independent. I have been a bit delayed (actually a lot) in these updates but will now try to provide more frequently. Last update was in Oct 2017. To recap, I started his brokerage account with 824 dollars that he had at age 6. These funds came from piggy banks savings and money that relatives gave him on his various birthdays. Using this $824, I opened an account and bought 10 shares of SDY with automatic dividend investing. The journey started on May 20th, 2015, my March 2016, his account had returned over 5%, better than amount sitting in piggy bank. Now it is 2.5 years, so let’s see where he is. Over last year I deposited, 190.46 that he deposited in piggy bank (I give him all the change I have in my pocket) and $120 he got for his birthday from relatives. I also started adding $5 a month for him and back calculated from month 1 to give him some additional boost. This gave him $540 additional. Bringing in total deposit of $1554.46.
Since the last update another $15 were added by me ($5 monthly)
Original Deposit: 1569.46
Current Balance: 1907.09
If I just do rough calculations on original deposited and amount earned then he has earned about 22% on his original amount.
I have added few more stocks and ETFs and his holdings now are – GE, MSFT, SDY, VIG and DIV. GE is the only one which is in Red, others are all positive gains.
I will continue to add to these as more money gets deposited. He is now 9 yr old with an asset of $1907.09.