Young Investors

Teaching children about money is something on every parent’s to-do list. But what about investing for teens and young adults? They have the great advantage of time. In fact, there’s no better time to start than right now.
Tips by Stacy Wynn | May 7, 2018 | Lifestyle

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.