Notes by Success Tutorials
Success.lt
Financial Advice for Teens
This section is dedicated to providing financial advice which may be helpful to teens. Success Tutorials has nothing to sell in this area. This advice is offered based on conversations with various teens who brought up money issues.
The main rule is: 1. Save some money from everything you earn, about 20%.
The second rule is: 2. Invest your money in a safe place such as Canada Savings Bonds. Canada Saving Bonds can never go down in value. You will always have more Canadian dollars in the future than you have today if you invest in Canada Savings Bonds. It is true that the Canadian dollar can go up and down in value on the world market and that the inflation rate can change. However, there is no more risk free investment if your goal is to have more Canadian dollars in the future than you have now. There is no risk of ever having fewer dollars with Canada Savings Bonds.
The final rule is: 3. Never spend the money which you have begun to save.
If you only follow these three rules you will have more money in the future than most people.
It is possible to make more money if you try riskier investments but riskier investments can also cause you to lose all or some of your money. The above three rules will work to make you wealthy during your lifetime and you will not have to worry about losing your money because of bad investments.
When you are young you don't need riskier investments to make money because you have many years in which you can collect interest on your money. It is interest on your money which will make you wealthy. If you decide to look at other investments as you accumulate money, remember: riskier investments can make you more money but they can also lose money.
Good luck and be careful!
Opdateret d. 23/2/01
