I have a nephew in high school and he had to say a few things about money:

1. I carry money to school, but never lend it to my friends: I am not sure whether I will get it back from them or not, so I do not lend it…..NINJA anyone?

2. I buy things only at a sale: He has bought a second hand camera lens (Oh my God!), a bicycle and many small utilities from flea shops. I told him adults buy shares only when prices are increased – they sell when prices fall. He wondered whether to learn finance from me. Adults as a specie was worrying him.

3. I do not stake my lunch money: He buys food at the school canteen. He does not risk that – keeps it in the school bag (not in his pocket). I told him adults put their next month’s EMI money in the share market…and wonder what to do.

4. He has invested in 2 funds (chosen by him with help from the net). Another colleagues son came to me for investing – I asked him to do research. He vanished. Of course my friend is very rich and perhaps can afford it. My views are different though. I asked him how he chose the equity fund. He said very simple Large cap fund with the HIGHEST AUM – his explanation was many of the companies which he had heard about was present there! Also if so many people had invested it had to be good (come on kid is in 9th standard). I do not know whether this is a good logic, but in the past 2 years he has been in Hdfc top 200 – not a poor performer! Yes he has no debt – ‘coz he has not reached the chapter on ‘asset allocation’ !

5. He has kept it simple – his dad is his fall back option! His portfolio has done well in the past 14 months – the kid has not panicked, not withdrawn, not stopped his 1k per month sip!

He hopes to be a crorepati before his age of 30 years. God bless.