Hey there! It's Talk About Money Tuesday, my favorite day of the week!🤑
I've been sifting through thrift store racks with a renewed passion, thanks to a recent news story about a young thrift store shopper finding an item worth tens of thousands of dollars. (More on this story later).
The discovery drew plenty of attention and, for me, raised an interesting financial question: Can a collectible be an asset?
The answer is yes, but there's an important caveat. Collectibles may be valuable and may increase in value over time. However, whether a collectible becomes more valuable depends on demand, rarity, condition, and authenticity.
Since young people already see collectibles through trading cards, sneakers, toys, games, and music, you can use those interests to introduce bigger ideas about ownership and risk. When youth understand the difference between something that's fun to own and something that builds wealth, they're already thinking like investors.
Money Stat
$16.5 million
The market for Pokémon cards is so hot that children can barely find them in stores. Adults are snapping the cards up and, in some instances, selling them later for millions of dollars. Earlier this year, a rare Pikachu Illustrator card sold for $16.5 million — the most expensive trading card ever sold at auction, according to CNBC.
More people are looking at Pokémon cards in a new light, auctioneer Ken Goldin said. “We are seeing people use this as an alternative asset and allocation of wealth,” Goldin told CNBC. “Whether that becomes more institutional over time is still to be determined.”
From Pokémon cards and comic books, to limited-edition toys and games, today's collectibles could become tomorrow's valuable assets.
Money in the News
The news: An Oregon teenager paid $3 for a vintage warmup jacket at a thrift store. It later sold at an auction for nearly $90,000 after experts determined that Wilt Chamberlain wore the jacket during the 1972 NBA finals.
What it means for young people: The lucky teen in this story had spent years learning about vintage sports clothing and memorabilia. His experience helped him recognize that his purchase might be worth far more than the price tag. When young people build deep knowledge about hobbies they enjoy, that knowledge can be useful in unexpected ways.
Tip for parents & mentors: Ask your child whether they own something they think could be valuable one day. Talk about why someone else might want to buy it in the future. Don't forget to remind that just because something is special to them doesn't always mean others will pay more for it.
Get in the Zone
Money skill: How to compare different types of assets
Why it matters: Different assets help people achieve different goals. Some focus on steady growth. Some produce income. Others are a hedge against inflation.
Collectibles usually depend on future demand and can be tough to sell quickly. If young people understand those differences, they can avoid thinking that every valuable item is automatically a good investment.
Try this: Understanding assets starts with understanding value. These activities help youth explore why some things are worth money and how value can change over time.
➡️ Age 5-9: Go on a "value hunt" around your home. Ask your child to find three items they think are valuable and explain why they chose them.
➡️ Age 10-13: Have your child draw four columns on a piece of paper — Savings Account, Shares, Property, and Collectibles. Together, list one advantage and one challenge for each. Then discuss which asset would be the best choice for different goals, such as saving for a bike or retirement.
➡️ Age 14-18: Ask your child to choose a collectible they're interested in, such as a trading card or a video game. Then compare it to an investment fund or stock. Research together what could cause their favorite collectible to increase or decrease in value and discuss which investment seems the most predictable over the long term.
The Language of Money
Here are some youth-friendly definitions of words that often come up when people are talking about collectibles, investing, and wealth:
Appraisal: An expert opinion about how much something is worth.
Asset: Something you own that has value (like a rare Pokémon card) and could be sold in the future and may help you build wealth over time.
Authentic: Real, not fake or copied.
Collectible: An item that people want because it's rare or historic.
Condition: How well an item has been cared for.
Limited edition: A special item made in a small number, so it's harder to find.
Vintage: An older item that is valuable because of its age or style.
Loose Change
🍿 A collectible can be pretty much anything, including a movie theater popcorn bucket.
📜 It turns out a dupe was actually the real thing.
🗣️ Calling all millennials: If you still have any of these 10 things from your childhood, they're worth a little cash now.
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'Til next time,
Audrey
Founder &
Certified Financial Education Instructor
The FinLit Zone
600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
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