Investments for teens?
 

What are some things teens can do with money that will help it grow? Where would i start?


I've read some investment books, and it's peaked my interest.

I hardly have any expenses because i live at home, and I've saved a couple thousand dollars in the past year, so I'd like to do something good with it now.

Please aware me :)

Keep reading up and follow the market from the sidelines including using a virtual account. A couple of thousands isn't worth it given your inexperience/commission costs per trade.

When I was younger, i locked down 5k in a GIC at 4.5% and made like 400 something over 2 years. The interest rate has probably dropped now though. 400ish isnt a lot, but "free" money is free money.

For something relatively basic, how about an RESP (registered education savings plan)?

you're probably better off just putting it in a high interest savings account @ your financial institution and earn a few dollars a month. That and what shawnly1000 said.

+1 on the RESP , I believe you get $1000 if you put in $2000 annually.

better off buying some tools or something in a hobby you enjoy,

then make money doing it for others

always save some money while you are still young and at your teen.
you never know when you need those money as emergency when you start your worklife.

Poker.

Learn the game, play, risk, learn from your mistakes.

When I was unemployed poker was a good source of income. Don't have high expectations though like the guys on tv who wins millions.

:suspicious:

BigTrollFace is trolling lol

cant stress learn the game enough, this includes bankroll management

As mentioned a couple times above, when I was in high school I worked every chance I could and never spent much, and put everything in a GIC. Free money imo.

And in Grade 12 I put some money in stock through my parents (took them all out now), and also invested in a business which has now been providing a good steady return every month.
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what have you read, what did you learn?

the best book i can suggest is "the wealthy barber" by david chilton. he gives you the best basic foundation. His new book "the wealthy barber returns" covers new products such as a the tfsa.

a lot depends on your risk tolerance. if you are young (in your 20's or earlier) and have disposable income/savings - i suggest aggressive growth stocks. market is cyclical. don't try to time it, rather have a balanced portfolio of stocks/bonds.

if you are in your 20's but have 0 risk tolarance, go with some conservative dividend paying stocks (ie. blue chip co's that are recession proof - think Microsoft, Proctor and Gamble, Shoppers Drug, etc..). You want to get more than 2% inflation and most dividend stocks give you that.

I'm against GIC's cuz they lose you money due to inflation.

things to remember:
buy low , sell high :)
don't invest more than you can lose within your time horizon
don't time the market (read on adjusted cost base)
invest in things you understand (i lost some cash by investing in a solar panel co. had no idea wtf they were doing)
never invest based on "tips" by your friends

just myself:
dun go on buying margins on stock trading.

seen too many people on the news went on a suicide/lost a family because of that...

"Common sense on mutual funds" by Jack Bogle is a great read that cuts through the incessant media chatter.
The greatest investment you can make is in your education. Get a masters degree.

not sure how many teens are actually reading this thing.

minorly off topic (more like how to control your finance).

from my personal experience:
- dun get hooked on gambling, i know some people think it is cool, but when you are 19, and losing $1000 on roulette, that is not good
(think about the stuff that you could have purchased with $1000)

- limit your use of credit card, use debit card instead
(debit card controls your spending habit more effectively than credit card, because debit card can immediately decline your transaction and you will not be in debt --- on the other side, if a credit card decline your transaction, you have a chance that you are already in debt..)

i am 25 now, and from above experience, i have a family member that was hooked on online gambling (borrowing money from credit card cash advance - VERY STUPID decision), and ended up i lent money to him to pay off part of his debt, and guess what, i didn't get my money back till three to four years later :(

:fuckthatshit:

Thanks for all the tips guys!

I'd not much of a risk taker, but will definitely look into GICS or something similar, hopefully with a higher interest, it's all around %1 :lol

I played virtual stocks at this site and came first in my class with a %8 gain on $100k in 2 weeks, but that's about all the research i've done on stocks.

I will definitely continue to read and read and read, and perhaps play it again.

Much appreciated!

had to correct you there

LOL it's much much easier to invest with a virtual $100K...in real life ... :fuckthatshit:

If you're the type of guy with a lot of perseverance, I'd say maybe give Forex a shot.

I actually broke a record in a similar game at my high school ,I turned 100k to 160k in like 3 months based on the real market (not sure if yours is), every class I just went to the section on yahoo listing the most bull/bear stocks, looked at their 52 week lows, if it was close to that, I'd google how the industry / company was doing, GG all the dumb kids investing in best buy or apple in a stock game with a time frame in grade 9 business. Not saying this works, but you gotta go balls deep and pray for luck if you wanna win the game.