1. Rule #1: Don’t invest more than you’re willing to lose is true at any age. Remember that no investment, no matter how conservative, is a fully safe bet.
2. Small Amounts: Don’t have much money? The sooner you invest, the more potential there is for growth. Just think: $20 a month in a retirement account at 22 can become over $35,000 by retirement.
3. Start Safe: First-time investors are often guided to index funds, a combination of stocks that are indexed, or pegged, to the market and will go up in time.
4. Automated Investments: Every teen loves their phone. Robo-trading apps will make trades on their behalf based on a personal financial profile and goals.
5. Dry Run: A virtual trading account is a good way to practice by making real trades with fake money — a no-loss dress rehearsal for the real thing.
6. Be Committed: Avoid impulsive decisions. Keep an eye on the overall market and hang in there during temporary downturns.
7. Dividend Celebrities: Mature companies that pay solid and increasing dividends are a great way to get started. The key here is to keep reinvesting those profits.
8. Self-Investment: Study the market, see what it needs, find an underserved niche that fits with your personal talents and skills and start a small business.
9. Avoid Debt: There’s no point in putting a lot of time and effort into investments if you’re floating credit card debt at 25%.
10. Be Patient: Remember that ultimately money is a game. Luckily, teens and young adults have plenty of time to recoup from mistakes.
