Kidszone
Feature
Some ideas to help dreams come true by financial expert and
author, Paul W. Lermitte.
The Pizza Method of Getting
Rich
Last month we talked about setting goals. I'd like to encourage you
to think about setting some goals for saving. Perhaps you would like
to go to University some day, or buy a car when you turn 17! You can
start saving for that now! A great way to save is with something called
a "Mutual Fund"!
Imagine that you want to buy a pizza, but you only want one slice. So
you and several friends put your money together, and buy a pizza from
a pizza maker. He looks after the pizza for you. A mutual fund is like
this pizza. Many investors put their money together (like the pizza
buyers), invest , and then the fund manager (like the pizza maker) looks
after the fund (the pizza). The difference is that the fund manager
is making sure that your fund value grows (sort of like having your
medium pizza become a large, without paying extra).
Over many years, a well cared for Mutual Fund can make your money grow.
And right now the stock markets are down so more mutual funds can be
bought for less money. I know this sounds kind of complicated, but believe
me, long term investments will be important in your future!
So, if you'd like to start doing some serious saving, talk to your parents
about starting a mutual fund account!
* * *
Want to get some forms for kids that help you plan
what to do with your allowance? Click
here!
Blast off to the Making Allowances home
page!
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contents © 1999, 2001 by Paul W. Lermitte
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