Black MBA - Spring 2008 - (Page 42)

EDUCATION Investing Young you really don’t,” he says. “The key is to just do it. Start early and start small. As you get older and make more money and get more comfortable with investing, you increase the amount of money you invest.” Ron shared a similar message in October 2007 with the youth participating in the LOT “Investing 101” seminar. Ron led a Q&A session, and quizzed children ranging from ages 7 to 18 about investing essentials. He asked questions such as, “What’s a stock dividend?” and “What’s a savings bond?” Each correct response gave the child a chance to win door prizes such as Starbucks cards, Dallas Cowboys tickets and Victoria’s Secret gifts. “They were props to illustrate how you can become owners of these companies by owning their stocks,” Ron explains. He suggests investing in companies that children are familiar with, such as those previously mentioned and other companies like Disney, CocaCola and Apple, Inc. He considers it a good starting point to teach the basics about investing, and he says familiarity leads to more questions. To further support his claims, he recalls how many of the children at the seminar asked their parents a barrage of investing questions afterward. Powell says that enthusiasm is a good starting point and a wake-up call for everyone. “America is such a spendthrift society,” Powell says. “When you do the opposite and invest in your family, it’s making a statement that family members and society at large should take notice of.” mba Temple Hemphill is a Chicago-based writer. For more information about teaching your children about investing, visit www.teenanalyst.com (a complete glossary of investing terms and an overall g reat learning resource for youth is available here) and visit www. saveforcollege.com to learn more about college savings plans. Also, contact your local NBMBAA Chapter to find out how to involve your kids in the Leaders of Tomorrow program. make their dreams come true to pay for college, buy a house at an early age or start their own business,” he says. Powell said Ron Fry is a good example of how extended family members can expose young family members to investing, especially in homes where limited financial literacy is taught. “Hopefully, the chain will continue and the kids will grow into adults who’ll invest for their younger family members,” Powell says. Aside from investing in his nieces’ financial futures, Ron is passionate about teaching others about i nvest i ng opport u n it ies. He is a nine-year member of the National Black MBA Association Dallas-Fort Worth Chapter, and cofounder of the PoNoMo Investment Club started in Dallas in 1999. He helped launch more than 12 additional investment clubs across Dallas and in other cities such as Houston, Atlanta and Washington, D.C. “People think you need a whole lot of money to start investing, and SIX TIPS TO TEACH YOUR CHILD ABOUT INVESTING AND SAVING By Debra Callaway 1. Education – Expose your child to money-making and investing opportunities. Subscribe to publications focused on economic empowerment and encourage your child to read the business section of newspapers. 2. Encourage savings – Pay your child an allowance for chores and good grades. Insist that he or she save 50 percent of all cash received. 3. Promote familiarity – Invest in diversified funds and purchase stocks in companies that your child is familiar with, such as FUBU, NIKE, McDonalds, etc. 4. Set goals – Guide your child in setting annual financial goals. Evaluate and monitor these goals quarterly. 5. Research – Encourage your child to use the Internet to research mutual funds, stocks and the fundamentals of investing and savings options. 6. Arithmetic – Teach your child how to balance a checkbook. Debra Callaway is a Dallas-based financial advisor at Morgan Stanley. For more questions and advice, contact debra.callaway@morganstanley.com. 42 BlackMBA • Spring 2008 • www.nbmbaa.org http://www.teenanalyst.com http://saveforcollege.com http://saveforcollege.com http://www.nbmbaa.org

Table of Contents Feed for the Digital Edition of Black MBA - Spring 2008

Black MBA - Spring 2008 Passion, Purpose and Power Contents Web Browsing From the President & CEO Up Front Advertising for Change CEO to CEO: Straight Talk with Barbara L. Thomas and Renetta McCann The New Executive Search Wealth Building: A Head Start on Investing and Saving Young Continuing Education: Lifelong Learning is Easier than You Think Making Good: Catching up with some of NBMBAA’s 2007 Scholarship Winners On Campus: Universities Win Grants to Fight Poverty Public Service: Does Your MBA Fit in the Government Sector? Bridge Building: Make a Career of Giving Back Steady Speed: Kim Harris Jones Shares what Drives a Successful Auto Industry Career Financial Planning: A New Way to Work Your MBA Global Focus: Keeping up with the Competition Clock On the Move: Member News, Promotions and More Industry Focus: Biotechnology, Energy, Food & Beverage, Global Media and Entertainment Employer Profiles: Campbell Soup, FINRA Financial Finesse: Denise Hales Harrod and CompuCredit Advocate for the Financially Underserved Creating Lasting Change: GE Impacts Quality of Life in Africa William W. Wells Jr.: Finding Strength in Diversity Leaders of Tomorrow® Community Service Program: NBMBAA® and Wal-Mart Partner to Reward Students Who Give Back Reaching Out: NBMBAA® Chapters Give Back to Their Local Communities How To… Buy a Franchise: Understanding the Basics of Acquiring a Franchise After the Gridiron: Keith Sims – Dunkin’ Donuts Franchise Confidential: Paul Hubbard – Papa John’s pizza Strength Through Adversity: Bob and Hortense Bobbitt – McDonald’s On the Ground Floor: Valerie Daniels-Carter – Pizza Hut, Burger King, Auntie Anne’s Use Your Superstar Status: Black Entrepreneurs Break into Japanese Economy Marketing Maven: Odyssey Media Entrepreneur Linda Spradley Dunn Staying the Course: Black Marathoners Share Lessons from the Race Relationship Forum: Soul-Mate Strategies for the Career-Minded Vacations that Matter: Travel to Make a Difference Advertisers Index

Black MBA - Spring 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.