How can a 14 Year Old INVEST?

Question

I am 14 years old and recently started getting interested in money. I went to 2 neighbors and I now mow/edge both of their lawns for $25. I also get an allowance of $15 a week from my parents, but I vacuum, mop, everything. I have to earn it. I know my education is very important. I recently put my first 1,000 dollars into the bank, and I have another 200 with me, but as I only get like 1% interest. I know I should put it into stock, but what are some other tips. Also, I plan on saving just 5 dollars a day for the next 4 years(untill im out of HS) which will give me about $7300. SO MY QUESTION IS:

WHAT CAN I INVEST/PUT MY MONEY INTO THAT WILL MAKE ME MONEY OR GIVE ME MORE INTEREST?

Answer 1

Well, you go get some business cards and expand your lawn mowing business, just go to a business design place, and they can make you some cards. this can help you expand, if you save up enough money, you could put some of your money into mutual funds, stocks might be a little risky for your age, learn about the stock market little by little, and i guarantee you will learn a lot about investing.

Answer 2

First off, congratulations on being interested in learning about money and investing at such a young age!  I strongly suggest opening a Roth Individual Retirement Account (IRA).  The main requirement is that you have earned income, which you do since you earn money mowing lawns and doing other chores.  You can open one at www.troweprice.com with as little as $50 per month.  Select one of their Target Retirement Funds (choose the one with the year that is furthest away from 2008).  Good luck!

Answer 3

stocks

Answer 4

You can open a Certificate of Deposit at a bank. The deal with them is you have to put a certain amount away for a locked time period, but the interest rate is really good. Last I checked it was around 5% for an 18 month CD. Once it matures, you can re-lock it in with the interest and extra if you saved any, then bank on that interest again. It's better money management than a savings account, but you have to be disciplined. There's huge penalties if you take it out early. You may need a parent with you to open the account, since I think you need to be 18.

Just a note, if you do go with an IRA, Edward Jones will open/manage the account for you for $20-40 a year.

Answer 5

Now, most investment actually cost money to make the transaction.  It's not necessary worth it.

In your case, probably considering going to your local bank and invest in CDs.  Or, consider opening an online saving account.  Both pay about the same, with basically no transaction fees.

Online saving account currently pays about 3%.  Stock market today down 2%.  So, stock is not necessary an absolute answer.

Now, as you follow this path of savings... you will later accumlate a good amount.  Then, you should consider something more serious.  Also, at that time, you understand better what the stock market is all about.  It's probably not wise to buy something that you don't understand... You should probably also spend this time to read up on the topic.