1. Why Should You Invest
Investing helps your money grow faster than if you just saved it in a bank account. It can also help protect you from inflation and increase your wealth.
2. Types of Investments
2.1 Stocks: Own a piece of a company and get a share of its profits.
2.2 Bonds (Not applicable for teens): Lend money to governments or
companies and earn interest.
2.3 Mutual Funds (Not applicable for teens): Bring together your money with
others to invest in many different stocks and bonds.
2.4 Real Estate (Not applicable for teens): Buy property to rent or sell for profit.
2.5 Cryptocurrency: A new form of money that operates online, but it’s risky!
2.6 Fixed Deposit: When you put money into a account which you cannot touch
for a certain period of time. That money will then grow over that period of
time.
2.7 Interest Earning Savings Account: You can save it in a savings account which
will provide a small amount of interest.
3. Risk vs. Reward
Remember: The higher the potential reward, the higher the risk. Always choose investments that match your goals.
4. How to Start Investing
4.1 Start small with platforms that let you invest just a little money.
4.2 Educate yourself before you invest—read, ask questions, and do your
research.
5. The Power of Compound
Interest
Compound interest means your money earns interest, and that interest earns more interest. Over time, this can make a big difference in your savings. It is interest upon interest.
6. The Importance of
Diversification
Don't put all your eggs in one basket! Spread your investments out to reduce risk.
​
6.1 Low-Risk Investments: An investment that has a low chance of losing value
and provides steady, reliable returns over time. (e.g. Gold and Land).
6.2 Medium-Risk Investments: An investment that has a moderate chance of
losing value but also offers the potential for higher returns. (e.g. Shares).
6.3 High-Risk Investments: An investment that has a greater chance of losing
money but also offers the potential for high returns. (e.g. Stocks in new or
unstable companies and Cryptocurrency).
​*NB: All investments should be made carefully and after a lot of research. Ask your parents for help when needed.
7. Common Mistakes to Avoid
​Do not panic when markets drop. Stay calm and think long-term.
8. Investing Mindset
​Invest with a goal in mind, whether it’s for school, a car, or retirement. Be patient, and let your investments grow over time.