From play-money investments
to a real money plan

Jason Nedvin's investing efforts started with $1,000 in play money and an investment tip from his grandfather. Now at 13, he budgets all his real money.

The LaSalle Springs Middle School student was introduced to the idea of investing when he was seven. His grandfather, Arthur Nedvin, set up an investment game with $1,000 in play money.

Jason said, "He told me we'd play a game of investing. He said to think about things that I use. Those were the companies that I should invest in."

His first "play money" stock portfolio included Disney, IBM, McDonald's and Toys R Us.

Grandpa Arthur's original plan was to provide, in real money, whatever gain Jason had in his original make-believe investments. But, after just six months, that proved to be a little too much of a good thing for grandpa.

Jason said his original $1,000 investment "went up between $700 and $800 in just six months."

Finally, grandpa settled for giving Jason $250 to start his own real investment portfolio. He's been at it ever since. He said he regularly increases his stock holdings by using "birthday money, savings bond money and savings from my allowance." He's also in a program where his stock dividends are re-invested into more stock.

In fact, what started as an investment game has been turned by Jason into a complete plan for all his money.

He gets $120 per month allowance but has to handle most of his own expenses, including buying some of his clothing. To make sure he doesn't run out of money at the end of the month, Jason has developed a monthly budget.

Also, he has a savings account at the bank and his investment account is computerized. Although he's too young for a regular job, he has developed other ways to earn money.

Asked about his plans for his savings and investments, Jason said, "That's for college and a car."

He's already picked a college. He wants to go to University of Arizona. "It has a pretty good baseball team and good golf courses. Also, my grandpa lives near there," he said.

Jason has continued to follow his grandfather's initial advice about investment. He continues to invest mostly in companies that make products he uses. He continues to add to his investments in IBM and Disney.

But, in keeping with recent trends, he's added a mutual fund, Vanguard's 500 Index Fund.

Asked about his original play investment in McDonald's and Toys R Us, Jason said, "There was too much fluctuation in those stocks for me."

Jason said most of his friends aren't into investments yet. "They're into buying stuff, not savings," he said.

But, Jason finds he can do lots of different things and still save and invest. "Every time, I've been able to go where I wanted," he said.

He's got three sports hobbies--snowboarding, paint ball fights and golf. He also enjoys going to movies with his friends. But, he's always on the lookout for ways to save money.

For instance, he and his friends have found a wooded area near home where they can play paint ball. That means they don't have to pay a fee to use a professional paint ball range.

Concerning movies, Jason said, "I can go to the local Ben Franklin store where you can get all kinds of candy for a dollar."

Jason said he saves from $35 to $45 a month from his allowance. That goes into the savings account until he accumulates enough to buy more stock.

He's also on the look out for ways to earn money. He said he could get all sorts of baby-sitting jobs in the neighborhood but he doesn't like that too much.

He has found a wholesale source for imitation Oakley sunglasses. These are a hot item for younger kids. He gets a wholesale discount, marks the glasses up $5 or $10 a pair and still sells well under the retail price for authentic Oakley glasses.

But, he's run into a problem. He hasn't been able to find an imitation version of the type of Oakley glasses he wants for himself. He's afraid he might have to actually pay retail to get his favorite style.

That's a new problem that he'll have to budget for in the future. But, he said, "I never go over budget."