One of the groups of people that are often forgotten about when it comes to investing are teenagers. It is true that the investing world is an adult’s world, but this should not legitimize keeping teenagers out of the investing loop. As a matter of fact, teenage investing can be some of the most profitable investing that there is.
Why Teenage Investing Is So Important
When it comes to investing, teenage investing is so very important because of the fact that these are the individuals that are going to be the most capable of making the largest returns. Keep in mind that the largest returns are earned by those who keep their money in good investments for a long period of time. This is particularly true if those investments also happen to be paying dividends. When we are talking about teenage investing, we are easily able to see why this is so profitable and important.
Every Step Counts
Teenage investing is all about taking baby steps. It is simply impossible for many teenagers to put large sums of money into the market. Teenagers just do not have this kind of money available to them. Instead, they are in the best position to add small amounts of money to their accounts over time. This can most easily be done by setting aside a certain amount with each paycheck they make. Even if they are just adding $25 or $50 to an account every week or so, it is still far better than nothing. This early teenage investing will usually make them more interested in sticking with investing as they get older.
Important Things To Keep In Mind
It is important to think about what kind of broker you are going to use as a teen investor. The best option in this case is to use an online broker. This is critically important simply based on the fact that online brokers charge far less than a traditional broker. Most of these online brokers also do not have an account minimum to maintain. Based on all of this, all teenage investing should be done through online brokers.