Investment Tips for Teens
First off, understand the value of money by working for it!
You’re never too young to save money. It’s best to start saving it today so you can have enough for the rainy days. However, remember that money which you set aside to invest is money which you do not need for everyday expenses or emergencies.
Investments are for the long term – not for the near future. So what you are really doing is securing your long-term future.
Here are some basics to get you started on your way.
Don’t Invest What You Can’t Lose
Please consider this the first and foremost of the fundamentals, no investment is a sure thing. You can lose all or part of your investment, hence always be careful.
The Earlier You Start The Better It Is
Start off early in life, the earlier you invest – the more potential you’ll have for returns.
A small amount will balloon quickly. For instance, if you put aside $20 a month towards a retirement fund starting in your late teens you will accumulate $ 38,717 by the time you retire.
Make it a Habit to Save
This is probably the hardest thing to follow, but it pays off many times over. In most cases, as a teenager, you will not have to worry about bills or food on your table.
Hence, you can build the habit of saving and you will have a lot by the time you move out.
#4 Start with Stocks
Since you will not have a lot of savings at this age, it is best to start from stocks as they do not require a heavy invesment. You can invest in cheap stocks but make sure to diversify and select s