Worth reading: Raising Financially Fit Kids, by Joline Godfrey, an internationally recognized expert in family education and development. Her book is a combination of parenting and personal finance ideas – suitable for anyone with kids ages 5 to 20.

  • Raising Financially Fit Kids

    If Conifer Bay Capital could add one chapter to this book, it would be: The Benefits of Early Failures.

    Failure can be a great teacher. It causes us to be introspective and ask tough questions about what went wrong. Early failure demonstrates that setbacks can be overcome and that life does have second chances. 

    If your children have the potential to inherit significant assets, let them invest or spend a small amount of money. If you are lucky, they will fail spectacularly and become better prepared for future investments or spending.

    My early investing came from money I earned working in restaurants and cutting lawns during the summer. A broker helped me to buy some 1980s IPOs, including Lee Data Corporation and Diasonics Inc., both companies that went nowhere.  After becoming frustrated by losing money, my father helped me read financial statements, evaluate revenue growth and profitability. 

    These experiences as a young investor enabled me to become a more intelligent and confident investor of my personal savings, long before I ever managed money for other people.