I am blessed to be the father of 4 girls and one boy. They are all so very precious to me. With that love, one of my duties is to teach them everything that I can to get them most prepared for their life outside of my very protected, 4 walls.
Background
When I was in my teens, I very much remember seeing a piece of paper in my dad's office that had some very interesting numbers on it. He was a finance major, so it makes sense what I'm about to tell you. On this piece of paper, he had varying amounts of monthly payments and interest rates with end results. It started with very little...we're talking something like $20/month invested over X number of years at X interest rates would equal some number followed by rows of different interest rates and years. It had several groupings...$100/month, $500/month, etc.
The bottom of the paper showed how you could earn $10 million dollars in your lifetime by investing regularly with a great interest rate, etc.
This has stuck with me for a very long time. He has passed away now, but we often talked about investing, whether it be real estate, stocks, options, mutual funds, etc. But I finally figured something out...
He never taught me how to invest. He only taught me to invest.
I caught on to this idea just about a month ago.
I have been learning how to invest for decades now. I have invested in all the things we had talked about. I have added to it by learning about liquidity pools, something that, to my knowledge, never existed while he was alive. I learned about LP's just in the last few months here on Hive and have gone swimming...a lot.
The Point
I want my children to know how to invest. I've already taught them about inflation, interest, the rule of 72, what stocks are and how they work, real estate investing and leveraging other people's money and time. I've done a rehab where I paid them to be my workers and the older 3 were paid like a regular worker. They learned quite a bit about building a home from the experience.
After my 'aha' moment a couple weeks ago, I decided I would offer each of my oldest 3 a chance to invest $100. I told them I would pony up the $100, and in this case, it would be 100 Hive instead of $100. I sat them down individually and taught them about the 4 main methods to investing: savings in the bank/CDs, stocks, dividend paying stocks, and liquidity pools. I told them how much in interest they could expect as a return on their money and why the people/businesses offered this interest to them for their funds. It wasn't until I talked about Liquidity Pool rewards that their interest was peaked. I taught them about LP's and the 0.25% fee you earn each transaction. That was interesting, but the rewards really made them interested (pun intended) because they could see how investing 100 $Hive could turn into 200-300 Hive by the end of the year.
Then we talked about compounding the rewards!
Swap.Hive:PLN pool with some of her 100 Hive going toward the Swap.Hive:BXT pool for a litle stability.My youngest of the 3 @bitsofwisdom, decided she would invest mainly in the
Her plan?
To reinvest the earnings about once every couple weeks or 1 month to compound the earnings, but to also let the daily bonus percentages add up for an increased APR.
swap.hive:thgaming and some in swap.hive:PLN.My 2nd of the 3 @bigbrainproblems, decided she wanted something that was extremely passive. She put some of hers in
Her plan?
To check the earnings about once a month or more, let the bonus %-age go up, and make sure to check back before the reward pool days end to make sure she still wants to invest in the pool.
My oldest, which has not sat down with me yet, said of the choice between $100 for the stock market or 100 $Hive, she thinks she'll go with $Hive, but she's waiting to hear why it's better. We'll get there soon. I think I'll have her invest in the swap.hive:LVL or the newly established swap.hive:pob pool.
In the mean time, my Liquidity Pool earnings are piling up and I'll share with you what's happening with those, soon. My New Month's Resolution for March is coming to an end...and I've done well...maybe too well ;)
Stay tuned. Follow my account and you'll stay up to date with what I'm doing and how I'm doing it. You won't want to miss it!
Tokens Mentioned in my post:
PLN
LVL: The Token of the Year...the token for Psyber-X
THGaming: A Gaming Guild Token that will release its whitepaper soon
BXT: A token that when staked pays dividends from swaps that occur from Hive:Swap.Hive through Beeswap.dcity.io
POB: The token used by the Proof of Brain community-rewarding people for proving they have a brain...which I think is a pretty easy thing to do ;)
Swap.Hive: The Hive exchanges version of Hive so it can be traded off-chain, then reintroduced back to Hive when removing from the exchanges. 1 Hive=1 Swap.Hive. Using swap is a bridging mechanism.: a token to use in @nectar-queen's buzzing game, a game coming to Hive later this year. http://www.psyber-x.com
Other Liquidity Pools to consider: Leo:OneUp and Bee:Swap.HBD
LEO: A Reward token for the Leofinance community where talking money in all its forms is encouraged and rewarded.
OneUp: A community of gamers rewarding each other for fun/exciting gaming content
Bee: The underpining token for Hive that keeps the engine turning with all the 2nd layer tokens...It's a utility token that is very important
Swap.HBD: much like the swap.hive, this is the exchange version of HBD. Every Swap.HBD is backed by an equal amount of HBD held by the exchange.
Now go learn something cool!
very nice to have time with family and to teach them to be financially free !1UP
!pgm
that's some great stuff bawb, although I understand it might be something hard to teach to your kid(s) and there could be reasons someone decides against going into detail.
For instance like you said, your dad could have learned you the ways of stocks etc. but there's no way he could have taught you about crypto and LP's as it wasn't around or at least wasn't aware of it at the time. It can also make you too much focused on money in your life instead of enjoying and experiencing life without (too much) worry about money at the start of your career. Of course learning the basics and finding a balance in this all is important.
Another thing that always amazes me is how you can know about interest and the compounding effect and not really GET the compounding effect. Still to this day some examples/analogies slightly change my perspective on it although I think I have a rather good understanding of it. Just one of those concepts that's fairly easy to grasp at a basic level yet hard to really understand the full power of it for the human brain I guess.
Aside from the expected interest (I'd rather call it return as most options aren't regular interest) do you explain that some options are riskier than others and some might take years to come to that average return or might not reach that ever?
PS. also.. none of em straight up bought a psyberX starter kit? :-P
lol about the starter kit....they don't even know what that is. If their LP's do well enough, perhaps I'll tell them what it is and go from there. I also didn't pressure them to do the LVL LP, even though I think there's super strong upside potential for the coin.
I don't fault my dad. We only know what we know. And yeah, crypto wasn't around, so he couldn't have told me about that...though in my family there are only about 3 of us who know anything about it and I know the most. I've shared with those who want to know and let the others know I can explain it when they're ready. For instance, my sister is @liftslikealady. I've been teaching her quite a bit about it. She's earned hundreds of dollars worth of Hive already and does own about 600K in LVL. She hasn't dived into the LPs yet, but she's learning.
I do wish my dad had done what I'm doing...give me $100 to invest in something to watch in the stock market, then pull out the earnings later on to show me to appreciate the increase, etc. My daughters I think will be very happily surprised when in a month they check back in and see they have $15-$20 worth of crypto waiting for them. I tell them all the time that they can sell me their Hive back at any time. All we have to do is transfer the Hive to my account and we'll see what it's worth and I'll give them USD in real life...they're going to understand the benefits of investing, I think...at least I hope :)
Posted Using LeoFinance Beta
Slowly but surely. It is like learning another language.
https://ecency.com/hive-167922/@haveyaheard/how-liquidity-pools-work is the best article I've seen on LPs...
That is some great parenting there, Teaching your children that the future is in they hands and helping them get a step up on that :)
!pgm
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Been on a bit of the same journey with two big boys and a baby girl. Your story is inspiring and motivates me to give the youngest another "go" at it. She has also been the least easy to influence, having a mall too close at hand - something that never seemed to have any sway over the boys.
Keep up the good work!
/miko
I totally get the mall thing...When my girls were too young for a mall (is there such a thing)...around 5-11 years old (the older 3), I had them pick something they wanted the most...it was an iPod Touch. It was $200 at the time. I printed its picture on a piece of paper with a group of boxes with $5 increments so they could keep track of how much they had saved. It took each one of them 1-2 years to earn the money, but they saved up and got it. I wanted to teach them delayed gratification...and it worked, I think :)
I haven't done any swap liquidity pools. I've been on Tribaldex and each time I looked at the swap pools there has been something deterring me from investing there. Maybe it is just too many choices for me to think about right now.
As for your oldest daughter it seems that she will do some thinking and research on her own. Hive offers a decentralized opportunity for investment that stocks don't have. It's pretty exciting when you think of the possibilities.
!pgm
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