Sunday, March 13, 2011

Homeschool Math: The Stock Market

Today Ryan came to me and told me he would like to buy some more stocks.   When he was a toddler he scribbled on a piece of paper and we entered it into the colouring contest at our bank.  He won!  The prize was 2 shares of The Walt Disney Company.  Since then Ryan receives a dividend cheque every year.  The cheque is for about 50 cents, but it makes Ryan think about the opportunities for making more money!  


Since he would like to buy more stocks I thought we should learn about investing, and dividend stocks.  There are some complicated ideas when it comes to investing, however, the idea of compound interest, and making passive income are two ideas that a kid can grasp very easily!


As we begin our study of this we are both learning a lot.  Ryan is quite content to listen to me read long passages about stocks, and dividends.  He is interested in the content, so that makes it easy.  If he wasn't interested this would not be so much fun.   This is one of the major benefits of homeschooling.  We can focus on the boys' interests, and show them that learning is not just something you do in school.


The math and formulas used in learning about investing are complementary to the math "schooling" we do.  Learning in this manner is a wonderful way to learn.  (Just like baking and comparison shopping are great complements to fractions.) 


When Ryan has finished his stock research I'll pass along his stock choices, and his reasons why he chose those stocks.  Perhaps I will create a series that tracks his financial progress.


I hope you let some learning into your life today!
Alice.



1 comment:

  1. Oh Alice this sounds so fun. We did a project like this is college. We got 10000 fake dollars to spend. We chose stocks from the Sun and spend our cash. We made a spread sheet and bought and sold shares (fake of course) over the next month. It was fun to see how much money we could make. I would love to something like this with the girls too...so good to have knowlede of this...I know I wish I knew more. Way to go Ryan

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