Dear S.Q. Our 20 y.o. believes quick-rich schemes touted by celebrities and wants to invest ALL his trust fund in crypto. He doesn’t have independent control until he’s 25, but asserting “Hell NO! It’s a scam!” or a parental ultimatum doesn’t seem wise. So?
Dear Parent, A perfect example why trust funds aren’t available until age 25! Substantial scientific findings are that maturation continues in the prefrontal cortex of male humans into the mid-thirties, which is critical for decision-making, social judgement, and social/emotional regulation. Capitalize on your remaining 4 years to work with him on finances that will affect his entire life.
Make them teaching moments. Ex: give him his entire trust fund now in monopoly or fake money. Tell him that if he agrees to this project AND makes a greater profit in 1 year than it currently earns, you’ll CONSIDER releasing trust funds early. Together learn to buy, sell, and hold trades. Keep records. Talk regularly, require his written daily, weekly, monthly, quarterly balance sheets just like a team leader/sales manager in a brokerage firm. Learn investment strategies together. Teach him not to be that “sucker is born every minute.” -SQ
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