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Young Adult Tries His Hand at Investing—Loses a Little, but Gains New Skill
Dakota Irsik
Many young adults use their Opportunity Passport™ matched savings accounts to buy cars or pay for college tuition. But Dakota Irsik, 19, is using his to make more money. He's dabbling in investing.
Irsik, who, along with his two brothers, lived with a foster family for three years, took the six-week financial literacy classes offered by the Nashville site little more than a year ago. The freshman at Austin-Peay State College already knew some of the material, but also learned about budgeting, taxes, debit and credit cards, and balancing a checkbook.
When young people take the classes, the Initiative starts them out with $100 in their Individual Development Accounts. Irsik put in $10 and took the online Opportunity Passport™ surveys regularly, for which participants are rewarded with $40. He saved about $100 a month from a stipend for college room and board. Last summer, he reached about $500. Then, he got some money for school and used some of it to reach $1,000 in his IDA.
With his $2,000 and another $1,000 he had saved, Irsik went to Ameriprise Financial Services, one of Nashville's Door Openers providing special opportunities for youth transitioning from foster care. Irsik hoped he would double his money through investing. Ameriprise investment adviser Whit Smith, who works with the young adults in Nashville, recommended a Lehman Brothers index fund.
Irsik held the fund from last fall until March 2006 when he needed cash to replace his car that had died. In the end, Irsik didn't double his money — he actually lost a little bit, but that didn't trouble him. He was hooked.
"It was exhilarating to check my stock," he says. "It rose and fell. It was the best way to reach my goal. Just having the opportunity was great."
Irsik wants to continue investing – only this time, he plans to pick a riskier fund with a potentially higher yield. He just started a new sales job at Target and will put his savings into his IDA. He can get that matched up to $1,000 per year.
"This time, I'm not in a rush," says Irsik. "I'll give my stock time to grow."
