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Teaching Kids about Investing Money

What is Investing?

What is Investing

Investing money means when you put your money into something with the expectation that it will grow over time. It is all about delayed gratification and you can buy more things in future.

Why Investing Money is Important?

  • Financial Freedom
  • It gives protection against inflation
  • It allows you to make money while sleeping

Key Investment Rules

Key Investment Rules
  • Always invest money for a long period
  • Attempt to invest at least 10% of your income
  • Don’t invest emergency fund, only invest with money you don’t need for the next 5 years

Where I can Invest?

Stocks:

  • You will become the owner of the company
  • In the long term, you could get the highest return

Cash:

  • Money market funds or treasury bills
  • Lower returns but flexible

Bonds:

  • Lending money to a company or government
  • Lower risk and return compared to stocks

Alternative Investments:

  • Portfolio diversification
  • Gold, Silver, Real Estate, Crypto, Art, etc.

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