Last updated on July 1, 2021
Teaching Investment for Youth Generations Future. Investment secures our tomorrow, and Everyone should learn about it and practice some good habits that lead to a secure future from their childhood.
Life is like a video game which requires upgrades for different needs towards, efficiency and perfection. But the difference in life is you don’t get to pick your character or qualities at the start. We had to build our character and give it a proper shape for getting better every day.
When a minor get familiar with every quality at the max level from his/her learning journey, after collecting everything, they finally can develop their character, and things can go smoother. To secure your kids tomorrow, you have to teach them some lifehack, which will keep them on the right path and ensure their lives. In this path, the most valuable lesson for your child is to learn to manage money.
Money Managing Tips for Young Generation
Teaching Investment for Youth Generations Future. Teens should start saving money from an early age. 13 is the perfect age to start working and bringing money. The ideal way of managing cash is getting familiar with three things;
- Making Money
- Spending Money
- Saving Money
The proper completion of the first two will ensure the achievement of the last one. So, a teen should write down every dollar he is making and every dollar he spends. Keeping proper track of the money would balance the needs and unnecessary spendings.
Every teenager has their dreams of achieving something in their life. As a start, they should choose an efficient job that brings more than the minimum wage. For example, babysitting charges are $20/h, dog sitting and walking comes with 15-20 dollars, and grass mowing brings more money than that. So whatever they do, make sure the payment is more than the minimum wage.
Teenage is the best time to learn from books and interactive platforms. You can search on the internet or youtube to learn about money management and money investment for beginners. Try whatever works or inspires you the most.
If you like to learn from reading here, I’m suggesting five books on teenage finance,
• Simple Path To Wealth; By J.L. Collins
• I Will Teach You To Be Rich; By Ramit Sethi
• The Wealthy Barber; By David Chilton
• The Intelligent Investor; By Benjamin Graham
• O.M.G.: Official Money Guide for Teenagers; By Susan Beacham and Michael Beacham
At the age of 15-17, try to make more money from different jobs and seek your best qualities from learning new expertise from your interests. Such as piano lessons, swimming, dancing, cooking, photography, drawing, photoshop. Find out which one is your best skill or passion and focus on that field. Knowing your interest will put you on the map and set up your career path.
If a teen starts working and manages the money appropriately, hopefully, he will save some money. So after collecting some cash, the logical thing is to get a savings account in the bank. If a teenager is minor, then the parent should operate the savings account. While getting the savings account, one must check the interest rates, because, with the highest interest rate, the money will grow in the compound interest system.
Saving money can only be done by spending the minimum amount. The Discover It cashback for students is a handy credit card or loan for students who want to save money. The credit score requirements will keep your spendings on the limit, and you can utilize the rest of your money.
Investment Options for Teens
Teenagers have the best advantage for investing money; it’s the perfect time to select an investment option for the long run. The earlier you start to invest your money, the greater rewards you get. Investing in cash is the best way to make a profit effortlessly. These long term investments come with less risk and maximum benefit.
Buying Stocks is a safe way to protect your money from taxes. Stocks also give you an excellent return in profits. Suppose you have invested $100 for 10% gain in a year. Your holding’s worth will be $110 after one year, and it will increase to $121 and $131 after the second and third year. Gradually the amount will be double in 7 years.
Usually, the stock market requires vast investment if you want to buy an entire holding. But fractional shares allows us to invest in shorter amounts; teens can use their money to invest in trading and gain profit without any hard work.
Here are two popular application based stock brokerage house, where teens can invest efficiently.
If you want to invest in big-name stocks by the dollar, then Stockpile is an applicable option for you. In this app, investing is low cost and hassle-free. Stockpile lets the investments right into your control; they charge 0.99$ per trade. For more details, click HERE.
If you want to trade without paying the brokerage house for your trade, then the Robinhood app should be your first choice. The Robinhood app is made for beginner level stock investors. You can buy fractional shares starting from $1. Robinhood app has a unique cryptocurrency trading facility’s unique function, just like buying a stock or another equity on their app. Trading in Robinhood is free you can buy and sell anytime, in fact currently they are offering a free stock of up to $500 worth of value on signup, click HERE.
Investing your cash in a money market is more profitable than any other savings account. Usually, banks or brokerage houses offer these services. The interest rates are high in money market deposits. The FDIC insures the safety of the money for an amount under 100,000$.
You can liquidate the money market account any time you want; these accounts come with checkbooks. The interests of money market account go up down daily.
For the opening of a new money market, account companies or banks have their regulated requirements. Sometimes they require fixed deposit amount or sometimes not.
A savings bond is a kind of loan taken by the government from the people to exchange securities. There are two types of savings bonds, such as EE bonds and l bond. Both of them are a safe investment. You can invest in bonds from $25 up to $10,000 each year. Though the EE bonds have a 0.64% interest rate and the l bonds, have a 1.64% interest rate.
College Savings Plan
For college savings, there are two popular plans, The 529 Plan and the (ESA) Educational Saving Account. Both are savings account for our children. But if we consider the benefits, both have tax free growth and tax free withdrawal. Parents can roll funds between children for educational purposes.
On the other hand, a 529 is a state-run savings policy that you can’t use federally.
ESA also has limitations of 2000$ investment limit per person, but it comes with a wide range of investments variety of options, such as stocks, bonds, etc.
As you are having the liberty of investing and your rewards are available all over the country, I recommend ESA for college savings.
Cryptocurrency is also a very good way of investing money just like stocks. There are different Cryptocurrency apps where you can buy and sell cryptocurrency and use it for payment purposes.
For beginners investing in cryptocurrency, the easiest way is to use “CoinBase“. Coinbase is a crypto wallet app for beginners, as a beginner you can learn to trade crypto coins, and with fun; Coinbase charges a. 50% commission per trade. There is no minimum deposit limit in coinbase.
There are also few more free crypto trading apps for mention like Crypto Pro, Gemini etc.
The youth needs to learn better habits for a safer tomorrow. Teens are now getting self-conscious from a very early age. Proper financial guidance will lead them to transform into a generation that would be financially smart and successful