People use ChatGPT for everything from meal planning to marketing strategy. Although the generative AI platform is prone to hallucinations, it’s not bad at evaluating complicated concepts and conveying them in simple terms.

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I recently gave ChatGPT this prompt: “Pretend I’m my 12-year-old son, financially curious but a clueless middle schooler. Explain to me how to invest like I’m 12.”

Here are the highlights.

“Investing is like planting a tree,” the AI said. “You put in a little money now, and over time, it grows — just like a tree starts small and eventually gives you fruit, shade, or a cool place to climb.”

It said, “Investing is when you use your money to try to make more money over time. Instead of just keeping your money in a piggy bank (which doesn’t grow), you can put it in things that might grow your money, like stocks, bonds, or real estate.”

It went on to elaborate about stocks. “When you buy a stock, you own a tiny part of that company. If the company does well, the value of your stock might go up. But if the company doesn’t do well, the value might go down.”

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ChatGPT also explained how bonds are more secure but have a smaller return.

It also explained the value of long-term investments. “The idea is that over time, the value of your investments will grow. But it might take years, so don’t expect to get rich overnight. Think of it like saving up for a super cool game that costs $50 — you put a little bit away each month, and one day, you’ll have enough,” ChatGPT said.

Then, it emphasized the importance of starting small — a lesson even adults could benefit from. “Even if you only have $10, that’s a great start,” it said.

ChatGPT did pretty well with a thumbnail sketch of investing, making it accessible and fun for an active 12-year-old boy.

Next, I asked ChatGPT if my son was better off putting the money into a high-yield savings account or the stock market.

“The money in a savings account is safe. With a 4% interest rate, your money will grow, but not super fast. For $100, you’d get about $4 more in one year,” ChatGPT said.

However, for long-term growth, ChatGPT recommended stocks: “The goal is to make your money grow bigger, so when you’re older, you’ll have a nice pile of money. Think of it as planting seeds for a money tree.”