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In this episode, Tom and Michael share about their very first investments and some fun tips on how to get your children thinking about investing at a young age. --- Michael: Greetings, and welcome to another episode of the remote real estate investor weekend wisdom edition. I'm Michael album and today I'm joined by   Tom: Tom Schneider.   Michael: And today we're gonna be talking about our first investments ever. And some things to think about talking with young people with kids about how to get started in investing, and how we were able to dip our toes into the world of investing and arrive where we are today. So let's get into it.     Alright, Tom, so I am very curious to hear from you. How did you get your start with investing in general doesn't have to be specific to real estate. I know your story. You got started after college with real estate. But is that where your story begins?   Tom: So my initial foray into any type of investment, it was a grandma kind of a deal. So grandma set up a brokerage account. I'm not like a trust fund baby, but definitely super generous of grandma to set to buy some shares of stock way back in the day. So when I was cash, it might have been like, first grade, I think for like birthdays. She just bought like a share of Disney or something that she thought that I would like, and it was…   Michael: Yeah.   Tom: …so fun. Again, not wildly high amounts. But I remember my grandma buying me Disney and then like second or third grade, periodically pulling up the newspaper. For those who don't know what it is just getting it to looking at like the stock section. And then like, looking to that stock or something and just seeing it move. It was really eye opening of Oh, wow, I just made whatever, a half a percent. And I didn't have to do anything. I think it was some early of passive income and investing so   Michael: And so is that what you eventually sold for the downpayment on your current house?   Tom: I did not know it wasn't from the down payment on my turn. But are you ready for a choosy beggar comment?   Michael: Absolutely.   Tom: Okay, so this is the like, choosy beggar comment. I am like, you know, again, so grateful, like what a cool thing to do for a kid, but she didn't reinvest the dividends. So like, when I like ever got old enough to check on the account, there's just a bunch of the money, like whenever there was a dividend or like, it would just sit in cash. So it's like,   Michael: Thanks a lot Grandma.   Tom: No, no, no, choosy a beggar choosing beggar. But it was a good lesson that I mean, what it did little math exercise for to go back and Okay, if this had just been reinvested as a within to the stock instead of just taking the dividends into their cash position. Anyways, I'm derailing and, and being a choosy beggar, but it No, I'm not a choosy beggar. But anyways, Okay, done talking to them, and word vomit.   Michael: What a great point to make. Because if that, I don't want to go so far as to call it a mistake. But if you hadn't learned that lesson, at that point in time, you may have never known like, Oh, this is a thing I should be doing, or this is good or bad. So I think that's great. And probably one of the most inexpensive lessons you could learn. And so I you know, hat off to your grandma for teaching you two lessons for the price of one.   Tom: Yeah. And to bring this back to real estate investing. A great example of this is okay, you collect your rent from your property. And unless you're in a position where you're living off of that money, which I assume a lot of people are not, is to be long term greedy, and save that money that you're getting from your rent collected and roll it into buying a new property. reinvest the dividends, man reinvest the dividends? All right, Michael. Good. Go ahead. What was your initial entry into any type of investing?   Michael: Yeah, so very similar story for my 12th birthday. My dad got me a couple of shares of GMC stock. And so yeah, I mean, almost exactly similar to you, I would check the newspaper and look and see what the sticker price the ticket price was doing with it go up, but go down and chatting with my dad having conversations with him about Okay, what is this mean? And what is a stock? And how does it work at a very high level, because, you know, I'm only 12 years old, I didn't have the kind of comprehension that Robert Kiyosaki had when he was a youngster. And he writes about in his book, to really understand the financial world with all about the comings and goings of the stock market and real estate and all that kind of good stuff.   So very high level, a stock going up is good stock going down as bad. And you can buy more of this. And so throughout my childhood, I would often receive gifts of, you know, two shares, three shares of stock, Disney, kind of the the big companies that, you know, kind of blew up, we think about a blue chip company. And that was great, except you really got an understanding of Okay, well, I can take money that I earned either from a job or allowance or what have you invest it, and hopefully walk away at some point down the road with more money than I put into it.   And so that delayed gratification was instilled in me at a fairly young age and my dad had this awesome quote, you remember those like claw machines we could put in a quarter and you whatever you played it with the client to get the stuffed animal or the toy. My dad said it to my younger brother who asked to play one of these claw machines, dad can I have a quarter to go play this. And he says, Well, do you want to be the kid that plays the claw machine? Or do you want to be the kid that own stock in the claw machine making company? Oh my god, like, it's like, so simple and seemingly kind of trivial telling that to a kid. But when you can start thinking about it in that capacity, that really changes, you know, your trajectory and the way that you think about money and about investing as a whole.   So I just love that story. And we always joke about it in my family. Because Yeah, it's just it's it's a shift in the mindset from consumer to investor.   Tom: Do you want to get clawed or be the claw?   Michael: Or be the… Yeah, be the claw. I always think about Liar, Liar. The Claw! Yeah, that was kind of my first story. And I've since been investing pretty much that whole time, as well. So I never never looked back of it.   Tom: Love it.   Michael: Awesome. Real quick. Last thing I'll ask you, before we go, Tom, is Is there anything that you plan on teaching your son in his early days about investing? How do you plan to have those conversations or share with him some of the knowledge that you've acquired over the years?   Tom: I gotta make sure I tone it down, like, like,   Michael: Charlie, we're talking about cash on cash return?   Tom: Oh, yeah. Huge fan of some of the online like learning stuff has gotten so good, like, Khan Academy is, I remember when it first came out, and like where it's at now. I really enjoy it. And I think it'd be something fun that we do together by way that I interact with my son as he basically just do stuff that I like to do with him and just see, well, there are a lot of things that he likes but he's a one year old. So you know, his his English is pretty limited. But you know, his financial literacy is… I think we probably do all throw a bunch of stuff at them. Maybe give them some, some some stock. Look, have them look it up, I'm sure to be like, fun, like getting a position to get them a property or something to like, follow. But I mean, that's way down the road. No, at some point, yes.   Michael: One of the guys anyways, Brandon Turner over at bigger pockets, the day his daughter was born, bought her bought a property and put it on an 18 year note so that by the time she was 18, she would have this free and clear property that she could decide what to do with either take over managing it or sell it to go to college or what have you. So I always thought that was an interesting idea.   Something else that someone told me was that the day that their children are born, they open up a credit card in their name, and they're just coasting around it so that way they get to start building credit by the time they're 16 1820 whatever, they have an established line of credit or credit history rather, which I thought was very interesting.   Tom: That's great advice. I remember in high school getting a good gas card and that helped me so much get credit I mean, just having some silly little gas card like established an initial line and it made everything down the line so much easier to do because there was just some proof and what's interesting about real estate the longer that it and maybe it's just situational now that I have like kid but it's like so much about it is past that is like thought around like passed down inheritance and like talking about building wealth like oftentimes it's a it's kind of a family team effort from generation to generation. Both on the education as well as assets side.   Michael: Totally.   Alrighty everybody that was our episode. Thanks so much for listening. If you enjoyed it, please please please give us a rating and review whatever it is listen to your podcasts. Those help us out big time. We look forward to seeing on the next one.   Tom: Happy investing.