How to make money for kids.
How to make money as a kid.
Learn to be smart with your money with investing and saving techniques.
Introduction
When an adult asks, "where do you see yourself in 20 years?" you probably imagine living in a nice house. You think you will have your dream job and be happy. You don't think you're going to live paycheck to paycheck never being able to enjoy yourself because you are always having to worry about your financial situation. For short term happiness, you might buy a new bike or video game but what will a video game do for you in 20 years. For long term, success think about putting your money in the stock market.
What is the stock market
You have probably heard some adults talking about investing or the stock market. The stock market is a collection of companies you can buy a small part of. This is called buying a stock. Investing is buying pieces of companies you really believe in. The point of investing is buying a stock and hoping its price rises. The price can be raised by other people, like you, thinking that the same company will do well. When more people buy the stock it makes the price of the company rise.
Start now!
You may think investing is just for adults, but actually you can start at any time with any amount of money. Stocks can range from a price of $300,000 dollars to $0.01. The earlier you start the better. Think about this. If you buy a company for $20 when you are 10, and its stock goes up 3$ a year. If you hold onto this stock until you are 50, the stock will be worth $125 dollars! If you sell it you will have made over 6 times your money. Another term you may hear in the world of investing is percents. Let’s refer back to the $3 you made on an investment. Percents or percent growth is based on how much money you made per dollar. In your investment, you started with $20 and you made $3. To calculate your percent growth you divide your earnings by the original amount you made. In this case, you would have made 15% growth which means you have 15% more money than you had earlier.
Don't freak out
When you start investing you will be eager to check the stock market each day to see if you made any money off the stock you bought. Let’s say the 20 dollar stock you bought goes up $3 one year, $6 the next, and some years you will lose money. The good news is Stocks almost always go up in the long run. The key is to not freak out when the stock market goes down and always hold on to the stock because in the long run the market will go up.
Save Money
In order to invest your money, you need to have money. You can make more money by doing extra chores around the house, mowing your lawn, and not spending money on unnecessary things. Once you have made money you need to save it. A way to save it is by putting it in a bank account. There are three main kinds of bank accounts, A savings account, a checking account, and a money-market account. A savings account is an account that you can easily put money in and take it out. A savings account is good for people who withdraw money a lot. With this account, you will earn a tiny percent of the money you put in each year. A checking account is very similar to a savings account except for one thing. You can write checks. At your age, you do not have to write checks. The third type of account is a money-market account. You will make a little bit more interest from this account, but it requires a minimum amount of money. If none of these accounts are available to you it is ok. You can save your money by putting it in a piggy bank or a safe. The key is to try not to have your money all over the place.
Inflation
The downside of putting money in a bank account is that you will actually end up losing money. Not the actual dollar amount. Let's say you have $400 in your bank account and that is enough to buy 400 chocolate bars. If you keep that $400 in your account in ten years you will have $403.60. However, you will only be able to buy 307 chocolate bars because of inflation. Inflation is when the price of everything goes up. On average the price of everything, or the inflation rate, increases 3.25 percent per year. In order to make money, you need to be making an average of 3.25 percent growth each year.
Stock recommendations
We have created a list of stocks sorted by price and risk. High risk doesn't mean bad. It means you have a greater chance to make a lot of money and lose a lot of money. Low-risk companies aren't bad either. They mean that there is a lower chance you will make or lose money.
Click the link now!
https://docs.google.com/document/d/1MOAkEo_LYRheLC9KaFGYgAv_OCee904UTHiF8_2iw8s/edit?usp=sharing
Set up a FREE Robinhood account.
We have found two videos to show you how to set up a Robinhood account and how to use Robinhood. If you set up your Robinhood account, Robinhood will reward you with a FREE stock. (We take no credit for the making of these videos.)
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How to set up your Robinhood account https://www.youtube.com/watch?v=kWcw0wu7Rug
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How to use Robinhood:https://www.youtube.com/watch?v=9XjD0cNg4WY
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We highly recommend these investing books.
How to turn $100 into $1,000,000.
This book has basic materials for investing
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Automatic Millionaire
This book is a little more advanced
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Investing guide for teens
This is also a pretty advanced book.
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The 12% solution
This book has intermediate content.
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Test your knowledge
We have created a quiz to test your investor knowledge.
You made it!
By now you have all the tools to be a successful investor.