My Teenage Son Thinks I’m Stupid

Hi Scott,

My 17-year-old son says I’m holding him back because I won’t let him access $1,000 of the money we have saved for him, to invest on something called BloFin. When I ask where he got this idea, he says “people”. I ask who – real people? – but I never get a straight answer. I’ve told him that if he’s that keen to invest then he can get a school holiday job and risk that money instead. That’s when I’m accused of being old-fashioned and not understanding investing. He might be right, I don’t understand crypto-style platforms. But I do understand working, saving, and not gambling money at 17. The digital world moves fast, and I know I’m behind. I don’t even trust what I read online anymore. Am I being overcautious? Or are these online trading platforms something parents should be deeply wary of? How do you guide a teenage boy who thinks the internet knows more than his mum?

Chloe

Hi Chloe,

Your son is right about one thing: you don’t understand investing.

What you do understand is that losing money hurts a lot more when you’ve earned it.

He’s 17. He’s bulletproof. He could lose the entire $1,000 and still not admit you were right.

That comes with the ability to grow sideburns.

Here’s my advice: let him lose it.

I know that sounds crazy. Hear me out.

When I was younger than your son, my first investment was something called a “special situations” managed fund. I’m fairly sure “special situations” was code for “whatever the fund felt  like betting on”.

The fund had ridiculously high past returns.

Which of course was exactly why I invested in it.

Guess what happened?

The special situations became extenuating situations. Then terrible situations. Then “where did all my money go?” situations. (I think they were big into emus at one stage.)

I lost most of my money, and it turned out to be one of my best investments. It taught me more about risk, hype and human nature than any book, podcast or online ‘expert’ ever could.

So here’s what I’d do:

Tell him he can invest the $1,000 in BloFin – but I agree with you, only if he earns it first with a school holiday job. If he won’t work for it, he doesn’t get to risk it. Simple.

If he earns it and loses it? That’s an expensive lesson.

But it’s a cheap one compared to what he’ll lose later in life if he never learns it.

The goal isn’t to protect your kids from making mistakes … it’s to make sure the mistakes happen while the stakes are still small!