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How should I start investing as a 14-year-old?

I really want to start investing but I don't know how.

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Tammy’s Answer

Start by reading books about finances that include chapters on investing. This will give you some knowledge about how investors make decisions about investing and give you some practical information about setting up an investment account.

Ask questions of people who have investments. How did they get started? How do they make decisions about investments now? How do they logistically make investments, e.g. which financial institution do they use, how do they pay for the purchase, etc.

Google is a great resource to find other people who started investing at an early age and are sharing their experience.

As a 14 year old, you are not legally allowed to sign contracts without a guardian signing on your behalf. The investment account is a contract. Your guardian, usually your parents, must sign the contract to open an investment account. Talk to them about your goals.

You must have sufficient money to invest. This means saving. There are costs associated with investing so these need to be understood before an actual investment can be made. Your reading and questioning will help you to understand this aspect of investing.

Good Luck!
Thank you comment icon I appreciate this, thank you for the advice. Selena
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Dave’s Answer

Hi Selena,
Investing at your age is going to be a big Plus in your life later on! You're going to need your parents to open up an account for you because you're too young to do it on your own, but I would suggest you select a mutual fund company, look for an index fund that has a very good 3, 5 and 10 year record, and open up a Roth IRA account. Yes, you'll pay taxes on it as you earn it, but once it's in that account it starts to earn interest, dividends, and appreciation that you'll never have to pay taxes on. You might want to read that again. Find out all you can about those Roth IRA accounts because this is going to make you a lot of money. I have done this with my own children, and now that they are 40 years old, they can see that once they retire, they are going to be absolutely wealthy! Start reading about those IRA accounts, how they work, how much you can put into them every year, and go for it! If you have a job that has a matching part to it from an employer, you're going to do even better. I would suggest you max out on this account every year. Read about it, learn the rules, and make millions!
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Isaac’s Answer

Absolutely! First and foremost, share your investment interests with your parents. They will most likely be your biggest cheerleaders (and necessary for legal reasons mentioned by others)!

Index funds are generally the safest choice, but if you want to explore some blue chip stocks (large, well-known public companies) to truly grasp the market, go for it! Here are a few helpful tips:

1. Embrace your losses as learning experiences. Don't feel discouraged if you lose money! Consider it an investment in your education (similar to college or trade school).

2. The sooner you begin, the better. Make sure to read up on materials and acquire a basic understanding of how to build a secure portfolio as a starting point (the choice is yours from there).

3. Patience is key! The stock market is not a casino, so never fall into the trap of treating it like one. Take your time when purchasing something, with the expectation that you'll hold onto it for a while.

4. Enjoy the journey! At 14, the sky's the limit for your aspirations.
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Trip’s Answer

I spent 34 years on the trading floor in Chicago at the CBOE. I would initially establish small positions in ETFs (Exchange-Traded Funds) of China and India, then buy the Russell 2000 (symbol RUT), which consists of stocks of the top mid- and small-cap companies. Invest regularly (monthly). Good luck
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