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Should teens invest into the stock market?

Maybe that could help pay for college if you have a successful portfolio? #investing #venture-capital #finance #real-estate

finance real-estate investing venture-capital
Thank you comment icon Definitely. YES, teens can and should invest in the stock markets via low cost Index or Exchange Traded Funds. And once a teen has simple investments in the S&P 500 or the Nasdaq 100, I recommend buying individual stocks of companies that you believe will grow in the future. As a teen, your investment in the stock market is NOT a way to pay for college. Your investment in stocks / index funds is a way for you to pay for your retirement 30 - 40 years from now. Even better do what I did. I started investing in the stock market when I was 22. I am 55 years old now. My kids have no college debt because I paid for their out-of-state tuition, housing, cars and insurance, beer money, using money from investments I made long ago in Apple, Chevron, Schwab, Southwest Airlines, Disney, etc. Roger Hancock
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Anwar’s Answer

The answer to when you should start investing in stocks is exceedingly simple -- as soon as reasonably possible, assuming:


1. All of your high-interest (read: credit card) debt has been paid off.


2. You've built an emergency fund to provide a minimum of three months' basic income should you lose your job.


Pass those two tests, and you should start investing immediately -- whether you are 12, 32, or 52 years old. There's almost no way your future self will regret making the decision.


If you are a teenager you can start small with the monthly savings or pocket money you get. 


Lessons from a master


The authoritative biography on Warren Buffett is mammoth -- over 800 pages. But as far as this article is concerned, the most important part of the book is on its cover: The title is The Snowball.


There is no better way to visualize how Buffett built his fortune -- and why it's so crucial for you to start investing as soon as possible.


Anyone who has stepped outside with their child in January knows how annoying and clumsy the beginning of a snowball can be. At the start, your back hurts from bending over and you wonder if you're making any progress.


Give the effort a little time, however, and you're suddenly rolling 100 pounds of frozen water around your yard. Not only that -- and this is the important part -- but with each revolution, your snowball is adding exponentially more weight.


Arrange your task so you can roll the snowball down a hill, and you'll have a veritable boulder on your hands in a matter of minutes.


So in short the sooner you start the better - Happy investing :)

Anwar recommends the following next steps:

Additional links : https://www.betterment.com/resources/strategy-investing-in-your-20s/
Thank you comment icon This was a great and thorough answer - it might be helpful to mention where you'd recommend people store their emergency fund. I found betterment a good place for it (since it only took 3-4 days to get the $), but what did you find? John Kilcline
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Preeti’s Answer

Yes ! Definitely .. I think investing in stock market needs good research and a very good understanding of a company, industry as well as the economy. You should have good statistical skills and also you should have reading habit.
I think investing in stock markets improves your judgement, analytical skills and also makes you aware of the things going around you.
To learn about investing you ca follow tutorials on youtube. Follow some blogs, also there are few courses you can take up on udacity udemy or coursera.
Also i suggest you to start investing because only reading about stuff doesn't help. You will need to have practical knowledge about anything you do specially the one which involves analytics.

Hope this helps :)
Cheers !
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Stephen’s Answer

Absolutely!

However . . . like others are pointing out . . . manage your money.


Good manner is the rule of 1/3.

1/3 of your money into savings
1/3 of your money into investing / paying down debt.
1/3 of your money spent.

Remember the most important rule of the rich . . . the rich don't work for their money, their money works for them.
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Simeon’s Answer

Agreed with the other people who have answered thus far. If your financial needs are taken care of and you have a good emergency fund, the sooner you start investing, the better. Diversify your stocks and avoid high risk stocks until you have acquired the experience to assess the quality of a stock. EFTs are packages of pretty reliable stocks that have a lower fee than if you used an investing agent to invest your money.
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Shannon’s Answer

Hello Kai, great question! If I would have asked myself that as a teenager I would have said yes and started investing as soon as possible if I had the means to do so. If you feel you have the understanding and money management go for it!
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