What can I invest in with 500 dollars ?

Question

I'm 16 years old with a summer job. What can I do with 500 dollars that is stable and will also help my money grow. Thanks.

Answer 1

Invest it in yourself. Just put it in a regular savings account that you can access for the things you may want to have. Beginning college fund. Date a girl. Buy a friend a present. With your obvious drive and ambition you will save enough for retirement after you are out of school.

Real life happens too soon.

Answer 2

well due to your answer i would suggest a savings bond. Granted your money will be locked up for 5 years but you will double your investment and i am sure your wont miss it

Answer 3

First off... that is great you are only 16 and wanting to invest money into something...  I would suggest looking online and finding a company that has potential to grow.  What I mean is put it into a stock that you like.  One that appeals to you and that you think has the potential to grow.  I really like your concept on life.  Most kids your age want iphones and what not and you want to invest.... that is great!!!  You will be the one that succeeds!  I'm kinda big on Scottrade.  They will profit soon.  I am a huge St. Louis Blues fan (hockey) and I own season tickets to the Blues, but they are putting together a plan that is of interest.  Scottrade Center is where the Blues play and David Checketts owns the Blues and other sports teams so I would definetly look into them.... last I hear you could buy stock with them for only $7 a share...that is cheap...with $500 you could really capitalize on that.... Good luck in what you decide!

Answer 4

Considering your age and income stream, you have several options, depending on when you might need the money. If you want to save it for something in the future, then a Certificate of Deposit at a bank can be an option. Most banks have terms from 2 months to 5 years on a CD, so you would need to decide when you want the money, and interest, back. If you think you might want to use the money in a short term, then a simple savings account at a bank or credit union would at least give you some interest on your money. Most other options have some risk, which you would probably not want to consider with your hard earned money.

Answer 5

I would discourage you from getting a CD because their interest rates usually only make up for inflation.  Therefore, if you invest your money today, by the time you take it out, the money might still be worth the same amount after taking into account of inflation.

Instead of CDs, I would suggest stocks or mutual funds.  Both provide higher returns than CDs.  If you want less risk, go with mutual funds; if you want the possibility of higher returns, go with stocks.

Either way, you will need to open a brokerage account.  Because you only have $500, you should open an account with an online discount broker because they tend to be cheaper.  Many of them have minimum deposit requirements, but there are some good ones that do not.

I currently use Firstrade.  They have low commission rates and no minimums.  I've used them for quite awhile now and have had no problems. I would definitely recommend you to check them out.

Answer 6

tbills..look into TIPS, which are inflation indexed tbills.

or find a nice long term CD w/a high yield.

since you want stability, you probalby want to avoid stocks, but if you do invest in stocks, make sure to invest in a mutual fund, like the S and P 500 index fund.  

but you're young, you can afford to take risk, as long as this money is to be invested for many years.

for now, since you're learning, stick w/bonds ...TIPS or CDs.

Answer 7

As long as you have a parent/guardian as a cosigner, and you won't need the money for a while, a certificate of deposit (CD) might be a good investment option for you. A certificate of deposit is an investment where you deposit a specific of amount of money (in your case, $500.00) for a specific amount of time. The length of time for the certificate of deposit is your decision. Banks offer many timeframes, some with better interest rates than others depending on the amount you're wanting to deposit and the amount of time you want the certificate of deposit to gain interest for. Now, the drawback is that if you withdraw the money before the timeframe is up, you will get charged an early withdraw penalty. Also, when the time of the certificate of deposit is done, if you take out the money instead of renewing the certificate of deposit, you will get taxed for the interest earned. If you renew the certificate of deposit, you won't be taxed until you take out the money. There are more details concerning a certificate of deposit, but you should call around to banks in your area to see what their interest rates for $500.00 certificates of deposit are and to get a more thorough explanation of certificates of deposit or other investment options. Hope you find something you like!

Answer 8

Put it is a CD (certificate of deposit). Your financial institution can tell you about them.

Answer 9

i think you can try overnight income investment. it more simple, workable, profitable and  no risk investment.. actually, your money will grow daily, your money can work for you even while you sleep, so you can get your first overnight income.  

Answer 10

Invest it all in the "Just R" fund.

Answer 11

Hi there. There are about a dozen or more ways to put your hard money to good use. First, when I was a kid I read a story about a young teenager who wanted to produce money on his own. So he bought a pig for like $20 and fed it for about $30. After 2 years he took the pig to the state fair and sold it for about twice the amount he had put in. So what is the lesson?Find something that can grow over time and pay you back for your time, money (investment), and effort or do all the research your options provide.

Now to the matter of what is available. Off the top of my mind I can say - several choices. But first, are you looking for short-term investment or long-term?

Options: 1. CDs/I-bonds, savings account are best for long-term, but interest is so low that the no-risk portion makes it difficult for people to jump start their investment journey with little capital. 2. You are young so establishing a good credit line is a must, but never mistake it for drop-everything-and-risk-every thing

to get it. (note: starting badly on credit is dangerous and could go badly)

3. There are places that give more interest on your money, such as, there is a website that allows normal people to lend their own money to other people with higher interests, but not high like in a corporate setting. Or you could go to garage sales or auctions - find,buy, fix it up, and resell like on ebay. 4. Start your own business. And I am not saying you should start your own lemonade stand either. There are ways to make money online or in person. In person, you can mow lawns or clean windows. 5. Build a stock portfolio. This can be risky, but there are ways to limit the risk. I could go on about all the risks  out there. Though I could tell you ways to reduce the risks too. If you are interested in more risky ventures then write to me if you want. I hope to put together a blog that will help anyone out there make money in any possible investment out there. 6. Buy gold, silver, copper or anything that has value and is expected to go up in value soon. Other examples are paintings and houses - over time the value appreciates and gives you high return on your interest. 7. Buy books, software, or take lessons that will educate the mind and give a boost in the right direction. For example, if you wanted to be a pilot, then take a few flying lessons. This may be harder to do nowadays with only half a grand, but it is a start. Only don't invest the whole bit unless you are absolutely sure that is what you want. Know your goals and seeing the path to reaching them will be half the battle.      hope this helps. - pratney47

Answer 12

You could get a credit card and build credit with it... very important for the future...