I am blessed to be the father of 4 girls and one boy. They are all so very precious to me. With that love, one of my duties is to teach them everything that I can to get them most prepared for their life outside of my very protected, 4 walls.
Background
When I was in my teens, I very much remember seeing a piece of paper in my dad's office that had some very interesting numbers on it. He was a finance major, so it makes sense what I'm about to tell you. On this piece of paper, he had varying amounts of monthly payments and interest rates with end results. It started with very little...we're talking something like $20/month invested over X number of years at X interest rates would equal some number followed by rows of different interest rates and years. It had several groupings...$100/month, $500/month, etc.
The bottom of the paper showed how you could earn $10 million dollars in your lifetime by investing regularly with a great interest rate, etc.
This has stuck with me for a very long time. He has passed away now, but we often talked about investing, whether it be real estate, stocks, options, mutual funds, etc. But I finally figured something out...
He never taught me how to invest. He only taught me to invest.
I caught on to this idea just about a month ago.
I have been learning how to invest for decades now. I have invested in all the things we had talked about. I have added to it by learning about liquidity pools, something that, to my knowledge, never existed while he was alive. I learned about LP's just in the last few months here on Hive and have gone swimming...a lot.
The Point
I want my children to know how to invest. I've already taught them about inflation, interest, the rule of 72, what stocks are and how they work, real estate investing and leveraging other people's money and time. I've done a rehab where I paid them to be my workers and the older 3 were paid like a regular worker. They learned quite a bit about building a home from the experience.
After my 'aha' moment a couple weeks ago, I decided I would offer each of my oldest 3 a chance to invest $100. I told them I would pony up the $100, and in this case, it would be 100 Hive instead of $100. I sat them down individually and taught them about the 4 main methods to investing: savings in the bank/CDs, stocks, dividend paying stocks, and liquidity pools. I told them how much in interest they could expect as a return on their money and why the people/businesses offered this interest to them for their funds. It wasn't until I talked about Liquidity Pool rewards that their interest was peaked. I taught them about LP's and the 0.25% fee you earn each transaction. That was interesting, but the rewards really made them interested (pun intended) because they could see how investing 100 $Hive could turn into 200-300 Hive by the end of the year.
Then we talked about compounding the rewards!
My youngest of the 3 @bitsofwisdom, decided she would invest mainly in the Swap.Hive:PLN pool with some of her 100 Hive going toward the Swap.Hive:BXT pool for a litle stability.
Her plan?
To reinvest the earnings about once every couple weeks or 1 month to compound the earnings, but to also let the daily bonus percentages add up for an increased APR.
My 2nd of the 3 @bigbrainproblems, decided she wanted something that was extremely passive. She put some of hers in swap.hive:thgaming and some in swap.hive:PLN.
Her plan?
To check the earnings about once a month or more, let the bonus %-age go up, and make sure to check back before the reward pool days end to make sure she still wants to invest in the pool.
My oldest, which has not sat down with me yet, said of the choice between $100 for the stock market or 100 $Hive, she thinks she'll go with $Hive, but she's waiting to hear why it's better. We'll get there soon. I think I'll have her invest in the swap.hive:LVL or the newly established swap.hive:pob pool.
In the mean time, my Liquidity Pool earnings are piling up and I'll share with you what's happening with those, soon. My New Month's Resolution for March is coming to an end...and I've done well...maybe too well ;)
Stay tuned. Follow my account and you'll stay up to date with what I'm doing and how I'm doing it. You won't want to miss it!
Tokens Mentioned in my post:
PLN: a token to use in @nectar-queen's buzzing game
LVL: The Token of the Year...the token for Psyber-X, a game coming to Hive later this year. http://www.psyber-x.com
THGaming: A Gaming Guild Token that will release its whitepaper soon
BXT: A token that when staked pays dividends from swaps that occur from Hive:Swap.Hive through Beeswap.dcity.io
POB: The token used by the Proof of Brain community-rewarding people for proving they have a brain...which I think is a pretty easy thing to do ;)
Swap.Hive: The Hive exchanges version of Hive so it can be traded off-chain, then reintroduced back to Hive when removing from the exchanges. 1 Hive=1 Swap.Hive. Using swap is a bridging mechanism.
Other Liquidity Pools to consider: Leo:OneUp and Bee:Swap.HBD
LEO: A Reward token for the Leofinance community where talking money in all its forms is encouraged and rewarded.
OneUp: A community of gamers rewarding each other for fun/exciting gaming content
Bee: The underpining token for Hive that keeps the engine turning with all the 2nd layer tokens...It's a utility token that is very important
Swap.HBD: much like the swap.hive, this is the exchange version of HBD. Every Swap.HBD is backed by an equal amount of HBD held by the exchange.
Now go learn something cool!