Best usage of cash prizes kids earned from chess tournaments

Last week, when I received the check for the cash prize in the tournament I mentioned, I did not tell Abe right away.

On one hand, I think I should give the whole cash prize to Abe since he earned it from chess tournaments. He earned the money and he should be able to decide how to spend it. If your kids play for chess, from time to time, on some lucky days, the kids may earn some cash prizes. The cash prizes make the kids excited. He or she might show off to the friends: something he or she truly “earned”. It is one of exciting moments in long hours’ chess playing.

On the other hand, from my experience, I think Abe might not spend it wisely if he spend all or most of the amount on his will. So I took some time to figure out how to “spend” the money. When Abe found out the envelope for the cash prize letter, he asked me “Where is the check? I want to have a look.”

I gave him the check and told him how to spend it. He said OK and run to show the check to Mommy and his little brother.

The next day, I and Abe went to a brokerage firm to open an investment account. We deposit most of his prize. I gave the rest to him. I told him, on future such occasions, I will give him one third of the cash prize he earned right away, and deposit and invest the rest. He will own the account and the money in it once he becomes an adult.

I know a little about investment as I know a little about chess, in fact I wrote some posts on them. I know it is very important to start early in the investment. I hope Abe can start early and learn a little on investment by opening his investment account. In addition, the whole thing might be one form of training on delayed gratification. It would be best usage for Abe’s cash prize earned from chess tournaments. Wouldn’t it?



1 Comment to “Best usage of cash prizes kids earned from chess tournaments”

  1. By stephan, January 19, 2015 @ 9:35 pm

    Children under 18 should not play chess for cash prizes. These chess tournaments that give out prizer to children are part of a group of child molesters. These tournament are not much different than drugs. Chess expand the mind. When a child is forced into one of these tournamen. They are not ready mentally.

    Another problem are these Chess Factories promising to make the child you bring to his chess studio a champion. Chess tournamentsnarenndesign to cover every level of play. The maing category is called OPEN, by the time you get to this level you would have spent almost twenty thousand dollars, and ther are no guarantee you will have a champion. Burn-out and excessive drug use are major problems.

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