"My son’s returns are better than mine"... Kids saving and growing their pocket money [World of Retail Investors]

/Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total.
" On the KBS2 program "Boss in the Mirror," which aired on the 26th, chef Jung Ji-seon’s elementary school-aged son spoke calmly about his stock investments. Viewers were split after hearing that he had started investing with 5,000 won given by his father and had grown it to 200,000 won.Some said, "He’s better than me" and "I wish I had learned that early," while others worried, "Is stock investing really appropriate for an elementary school student?" Lee Sung-kyung, a 41-year-old office worker raising a third-grade son, had a similar experience. Earlier this year, she opened a stock account for her son using 100,000 won in New Year’s money he had received.Encouraged by people around her who said that investment should also be learned early, she decided it would be worthwhile to let him gain at least some experience managing pocket money. She noticed a change in her son about a month after opening the account.
While looking at his smartphone, he asked, "Mom, if Nvidia is going up, doesn’t that mean SK hynix will rise too?" He had started paying attention to news she had casually heard, but now in relation to stocks. After that, whenever he received pocket money, he began asking first, "Can I put this into stocks?" The returns were only a few thousand won, but Lee said, "The important thing is that he has started connecting how the world works with money.
I think that is an economics lesson he can’t get at school. " Children build financial literacy by watching their parents.
The importance of financial socialization Developmental psychologist Sharon Daines first academically defined the concept of "Financial socialization" in 1994. According to Daines, financial socialization is the process of acquiring and developing the values, attitudes, standards, norms, knowledge and behaviors that contribute to financial viability and personal well-being.
/Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total./Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total.
In a research report released in December last year by the National Youth Policy Institute (NYPI) under the title "Why is financial literacy low among people in their early 20s and late adolescence?" financial literacy was defined as follows. \r\nThat is, ▲ acquiring the financial awareness, knowledge and skills needed to make informed decisions in the process of setting life goals and working toward them ▲ and the ability to combine and apply those skills in decision-making.The report identified parents as the most important factor in shaping financial literacy. Children develop their own financial capabilities by observing and imitating their parents’ financial education, spending habits, savings behavior and debt management.In particular, financial communication between parents and children affected how children internalize financial knowledge and form financial attitudes. At the heart of this financial socialization is not simply teaching children how to make money, but shaping their attitude toward money itself.
According to the economic concept of "path dependence," if the idea that "stocks are risky and difficult" becomes fixed at an early age, a person may hesitate at the market’s door even as an adult. By contrast, when children learn to see stocks as a natural part of economic activity, as Jung Ji-seon’s son did, they may come to view the market as a tool rather than something to fear.Minor stock investing has become a trend The trend is already moving. According to Korea Investment & Securities Co., Ltd. , Mirae Asset Securities Co.
/Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total.
, Ltd.
and Shinhan Securities Co., Ltd., the number of minor accounts opened at the three firms stood at 34,590 as of the end of December last year, nearly tripling in a year.
/Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total./Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total.
Against this backdrop, a revision to the Restriction of Special Taxation Act to introduce a "Junior ISA" was also proposed.
6 million won a year from gift tax until the child turns 19, while also making interest and dividend income earned in the account tax-free.Children’s stock investing is not all upside For all its clear advantages, the concerns are equally clear.Experts point out that minors may be swept up by rumors circulating in the stock market.
/Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total./Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total.
It is also important to teach the purpose of investing clearly.The moment profit becomes the goal rather than financial education, a child may learn to react emotionally to stock price swings instead of studying companies.There is also the issue of nominee accounts.If there is evidence that parents have actively grown assets in a child’s account through excessive short-term trading, the gains may be subject to gift tax .I don’t want to be one of those people who keep saying, "I should have bought, I should have sold, I should have held.
/Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total./Photo=Gemini \r\n [The Financial News]  "At first, I made 20,000 won, and later I earned 150,000 won. So far, I’ve made about 200,000 won in total.
bng@fnnews.com Kim Hee-sun Reporter