How to start Investing

Investing can be a great way for teenagers to grow their money and prepare for the future.

However, it is important to approach investing with caution and do your research to make informed decisions.

Here is a step-by-step guide to help you get started:

Once you have created your bank account, the next step is to start investing, as it is a great way to protect you against inflation.

What is Investing?

Investing is the act of purchasing and selling financial instruments such as stocks or bonds. The objective of investing  is to make money by buying assets at a low price and then reselling them for a profit when prices rise. Investing can be done on your own time, but it is often best to work with an advisor who has portfolio management experience. There are numerous investment options available, which will be discussed further below.

“Investing isn't a game to be won. At the end of the day, it's a way to achieve your big goals, like buying that home, starting that business, and retiring on your own terms." - Sallie Krawcheck

Investing is the best way to increase your wealth.

To start, you will need to open a Junior Stocks and Shares ISA. Interactive Investor and Fidelity both are highly recommendable and reliable to do this. You can sign up on their websites.

These websites have an annual limit, which ranges from £9,000-20,000.

This is a very good way to practice investing from a young age, and increase your wealth.

Practice with Virtual Money in an Investing Simulator

You may choose to practice investing using an investing simulator that gives you virtual money before risking investing with real money. This will teach you some valuable lessons about a investing in real life, without you needing to lose money to learn them.

Investopedia is a website that allows you to do this. All you have to do is create an account, and they will give you £100,000 of virtual money to start practice investing by buying and selling real stocks. In function of how these stocks perform in real life, your virtual money will go up/down, and you are able to compete with other investors that are using this investing simulator.

This is also a good way with getting used to your assets increasing and decreasing constantly, and it will help prepare you for when you are ready to invest using real money.

Bibliography

• General Investment Account - open a Gia in minutes (no date) Freetrade. Available at: https://freetrade.io/general-investment-account (Accessed: January 16, 2023).

• Sallie Krawcheck quotes (no date) BrainyQuote. Xplore. Available at: https://www.brainyquote.com/quotes/sallie_krawcheck_899560 (Accessed: January 16, 2023).

• Napoletano, E. (2023) What is investing? how can you start investing?, Forbes. Forbes Magazine. Available at: https://www.forbes.com/advisor/investing/what-is-investing/ (Accessed: January 16, 2023).