Your Destination: Saving money is excellent, but there is no point in putting all your money into a savings account or hiding it under the mattress. You want to make a portion of your money works for you. You will want to not only save but also grow your money for a rainy day, a serious emergency, more exciting long-term goals that will arise the more you achieve (like starting your own business) and even on your retirement.
Travel Kit: See Compounded Interest handout.
On the Path:
Investing in your education can have long term dividends.
Typically, higher risk means higher reward. For example, you might invest $100 and make $200 out of it or lose everything. Low risk means low reward, but it is typically a safer place to store your money. Your savings may be enhanced by compound interest (or compounding interest) which is calculated on the initial principal, and also includes all of the accumulated interest from previous periods on a deposit or loan.
Step 1: Research safe ways to invest that have a low yield are CD’s and saving accounts.
Step 2: Look at apps that help invest small amounts of money; for example, the Robinhood app allows you to invest small change.
Extend Your Journey: Start small you can start investing as little as $10.
Learn new vocabulary:
Compound interest
Risk -The chance that an outcome or investment’s actual gain will differ from the expected outcome or return.