Marketplace All-in-One How do stocks make money? (Part 2)
Oct 24, 2025
A young listener shares his adventurous journey into the stock market, guided by his dad. He explains why he wanted better returns than a bank could offer. The duo introduces the 'Bank of Dad' concept and explores the benefits of a certified deposit. Choosing an S&P 500 ETF, Joshua emphasizes the importance of diversification. He recounts the thrill and stress of tracking his investments, learning valuable lessons along the way. Finally, he offers sage advice for other kids, encouraging smart investing and caution with risks.
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Kid Tries Real Investing With Parental Help
- Joshua, with his dad Michael's guidance, chose to invest real savings in an S&P 500 ETF instead of a family “Bank of Dad” CD.
- He checked prices weekly, felt stressed by volatility, and learned investing is a tangible long-term experiment.
Involve A Trusted Adult And Limit Risk
- Always involve a trusted adult when kids invest and discuss risk versus reward openly.
- Don't invest money you can't afford to lose and avoid checking short-term price swings frequently.
Match The Market To Diversify Risk
- Choosing an S&P 500 ETF lets an investor match broad market returns rather than try to beat them.
- That diversification spreads risk across many companies and often outperforms picking single risky stocks.