Being a teenager can be hard. You’re in a limbo between childhood and adulthood. You have more responsibilities, but not as much freedom as you’d like. What’s your greatest advantage right now? You have a lot more time to make your money work for you.
If you have any money, whether from a job, an allowance, or a birthday present, start investing it. Say you begin with $1,000 and invest it at a rate of return of 5%. Even if you didn’t put in any more money, at the end of 50 years, you would have $11,467.49 saved up. If you start later in life, and only have 30 years with that same investment, you’d end up with only $4,321.99.
Now imagine investing money more often than just the one time of $1,000. It really starts adding up! So use your youth to your advantage and start saving and investing right away. Before you have all sorts of other expenses, and while you have so many years to benefit from, start growing your money now. Retirement might feel a long ways off, but your future self will thank you for planning ahead!