I'm a teenager, have $1000 to invest, and am willing to contribute an amount monthly, what should I do?

Question

I'm a teenager, have $1000 to invest, and am willing to contribute an amount monthly, what should I do with the money? I don't want it to sit there for 5 years doing nothing.

Answer 1

Great, I love seeing people who think like me. I am 22 right now but I had your mindset at your age. I would get a summer job and have a chunk of money and didn't know what to do with it. Now, keep in mind this was before Yahoo! Answers was around but I did ask others and this was the answer I received.



I would suggest shopping around different banks in your area and note what rates they are offering on their Certificates of Deposit (CDs). With a CD you agree to give your money to the bank for a fixed amount of time and the longer you give it to them the higher interest rate you will achieve.



Next, come up with a time period you want this CD to mature (ready for you to get your money back without penalty). I set my date for the summer after I graduated college which will be August 2007. I picked that date because I'll have finished a stage or chapter of my life, college, and could reevaluate my situation and see what I wanted to do with the money at that point in my life such as get a car, down payment for house, reinvest.



Now for the monthly amount you wish to contribute, contribute that to a savings account. You'll be getting a little interest and can still get to your money if there is an emergency. When you've saved up another chunk of money 500, 1,000, 1,500 open another CD that will mature around the same time as the previous CD. Mine was easy to set up because I would open CDs in August after my summer jobs or February after working for winter break. Since those months are 6 months apart it worked perfectly that banks have CDs for 6 and 18 months too.



You don't want anything too risky when you're young and CDs provide a safe environment for your money to get a decent return.



Hope this helps,

Glen

Answer 2

DUDE! Good for YOU!

Very few folks your age are smart enough to think like you!

If you want to put your money some place safe then look at online banks like Emigrantdirect.com

They pay just over 5% interest annually.That's better than the rate of inflation,but the interest is taxable.

But something tells me that you're looking to invest your money a little more aggressively.If that's the case then look at mutual funds.Mutual funds are safer than individual stocks or bonds,and some of the funds allow you to make monthly contributions.

Do some research on the internet.Look up "mutual fund" and "stock fund",or even "bond fund".Steer clear of any sites or advisors that promote themselves as "low risk" or "no risk". There is ALWAYS risk.Anyone that says differently is just out to take your money.

You have money to invest.Now invest some of your TIME researching reputable investment institutions.

You've already proven yourself smart enough to want to do the right thing with your money.Now just use those same smarts to invest your money wisely.

Answer 3

CD are safe, the return rate is a bit slow but you can pick terms to have your money in a Cd, usually 3, 6 9, 12+ months at a time and you can renew them or take your money out. Usually do something like that or keep it in savings until you build up enough to make a bigger investment, like a money market account later on or use it to make a purchase, like a car or pay for school.

Answer 4

No mutual fund give you guaranteed return as completely depend on how sector or market performs in that period. For higher return means higher risk is also involved, if you are looking for any such investments go for sector funds like FMCG, Pharma, Banking or infrastrcuture, Infrastructure is worst performed from last 3-4 years, so i feel investing in infrastructure will be good bet. But have time horizon for 5-7 Years.

Answer 5

dont do any of the past answers. im 15 and have $1,000 stuck in a cd til august making 5.5% which isnt bad, but it could be better. Mutual and money market accounts arent bad ideas either. but take a chance at the stock market. just know at our age with the minimal amount of money us kids have to work with its verrry hard to be diversified in the stocks meaning having more than one. My suggestion is to pick one stock you are sold on and are completely 99.9% sure its going up and throw all your money into it. i did that with a stock called JSDA jones soda. i bought as much as i could at 15. within 2 months it shot to 32. thats more than a 100% gain, although i didnt sell and its back at 16 right now.



although when you do put your money in the market be prepared for losses if they come your way. if you dont want that hard earned money down the drain go with something safer like a CD or a money market account or mutual fund.



and if you are so lucky to have a job right now then ask your company about roth IRA availability. if youre eligable for one DO IT. throw all of your pay check in it.the reason i say paycheck is because it has to be earned income (job only). it cant be the 1,000 you have sitting around right now. i dont care if you put your money in a mutual fund, money market, or stocks, but do it. go to google and look up the rule of 72s. at our age we could be millionaires by 50.

Answer 6

Ask your parents be for making any decisions. But all of our kids have bought stock since they were 2. Birthday money ext. They love watching the market. It was also fun picking stocks by things they used or wanted. ie Nike or Toys R Us. Coke, things that they themselves supported. My oldest just graduated and has a nice little savings.

Answer 7

i would put it into savings with a good interest rate. ask your parents to help you find the best one. i think that citibank and hsbc offer some good ones. i would say for you to open a cd(which is a type of short term savings with really good interest rates) but i think you have to be 18 or older to open one of them. Definitely put it in some sort of savings though and keep adding money to it. Do not take money out until you reach a goal of however much you want to save. Oh, and kudos to you for being a teenager who wants to save!

Answer 8

invest in the stock market

Answer 9

Open a bank account duhh loll

Answer 10

i would def check out http://goldenbullpicks.com

they have a fantastic success rate and there are a few more out them that would def be worth a look.

im with them and they have done me wonders!

Answer 11

Mutual funds. I have Fidelity and am happy with it.

Answer 12

then spend it all hahahha no just jocking save it

Answer 13

d00d, get a PS3

Answer 14

invest in me, ill do ur money good!!!!!!!!!!!!!