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What can i look into investing as a teen?

I am in my Junior year and am having trouble finding work

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Paul’s Answer

I would look into a variety of investments.
*Treasury Bonds. I would look at I-Bonds and EE Bonds. You can purchase these online directly from the treasury. Right now the interest rates are very good.
*Certificates of Deposits: These can be opened at banks. Check the interest rates for good rates and see if you can lock in a good rate for a long period.
These are two options to look at for individuals your age.
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Udit’s Answer

For young professionals without any background in investing, the following steps are highly suggested:

1. Regularly reading news articles can help you gain a clearer grasp of the overall economic trends in your region or country.
2. Pay special attention to financial news. At first, it might seem challenging to comprehend everything being discussed. Use this as a chance to learn financial terminology by simply searching it online and reading a couple of paragraphs. This will help you understand the news more effectively.
3. As you become more comfortable with these financial terms and concepts, start searching for older news on topics that interest you (for instance, high inflation). Then, try to find some data to see how the real world reacted/ financial performance to these situations. For example, if you're looking into high inflation, research what inflation is, how it functions at a basic level, then look for periods when the US experienced high inflation and read articles on that topic.
4. As you're doing this, think about downloading an app that lets you practice investing in a virtual environment. Essentially, you'll be investing pretend money in a simulation that mirrors real-world fluctuations. Use these tools to learn about different investment types (like stocks, bonds, currencies, commodities, etc). It's important to increase your familiarity and understand which of these interests you more. This is crucial because you might want to read more news or research papers on those specific topics.
5. Without any prior experience, it's not advisable to invest a large amount of real money. Depending on your savings, consider starting with a modest amount between $50 - $200.
6. If you have extra money, consider placing it into a Certificate of Deposit (CD) or a savings account.
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Jacob’s Answer

Investing as a teenager is a great way to start building financial knowledge and setting yourself up for a secure financial future. Since you mentioned you're having trouble finding work, here are some investment options that you can explore as a teen with limited income:

1. **Savings Account:** Consider opening a high-yield savings account. While the returns may be modest, it's a safe way to start saving and earning a little interest on your money. Look for accounts with low or no fees.

2. **Stock Market:** Investing in stocks can be done with even a small amount of money. You can use online brokerage accounts or apps that allow you to buy fractional shares of stocks. Start with companies you're familiar with and do some research.

3. **Exchange-Traded Funds (ETFs):** ETFs are investment funds that hold a collection of assets (like stocks, bonds, or commodities). They can provide diversification and are often a good option for beginners.

4. **Robo-Advisors:** These are automated investment platforms that create and manage a diversified portfolio for you based on your risk tolerance and goals. Many robo-advisors have low minimum investment requirements.

5. **Educational Accounts:** Look into educational accounts like a 529 College Savings Plan or a Custodial Roth IRA (if you have earned income). These accounts offer tax advantages and can help you save for college or long-term financial goals.

6. **Peer-to-Peer Lending:** Some platforms allow you to lend money to individuals or small businesses in exchange for interest payments. Be cautious and do your research, as this can be riskier than other options.

7. **Financial Education:** Consider investing in your financial education by reading books, taking online courses, or attending workshops on personal finance and investing. Knowledge is a valuable long-term investment.

8. **Start a Side Hustle:** If you're having trouble finding traditional work, consider starting a small business or side hustle. This can provide you with extra income that you can then invest.

9. **Consult a Financial Advisor:** If you have access to a financial advisor or counselor, consider seeking their guidance. They can help you make informed investment decisions based on your goals and risk tolerance.

10. **Practice Diversification:** Regardless of the investment option you choose, diversification is key. Don't put all your money into a single investment. Spread it across different assets to manage risk.

11. **Long-Term Perspective:** Remember that investing is typically a long-term endeavor. Be patient and avoid making impulsive decisions based on short-term market fluctuations.

12. **Risk Tolerance:** Assess your risk tolerance honestly. Investments come with varying levels of risk, and it's important to choose options that align with your comfort level.

13. **Budget and Save:** While investing is important, so is saving. Ensure you have an emergency fund in place and continue to save money regularly, even if it's a small amount.

14. **Learn from Mistakes:** Expect that you may make mistakes along the way. The important thing is to learn from them and use them as opportunities to grow as an investor.

Investing as a teen is a valuable step toward building financial literacy and securing your financial future. Start small, focus on learning, and gradually increase your investments as you become more comfortable and experienced. It's a journey that can yield significant benefits over time.
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