How to Start Investing in Your Teens
A beginner's guide to investing for teenagers, explaining the basics of saving, compound interest, and smart investment strategies
How to Start Investing in Your Teens
Many people think investing is only for adults but that is wrong. Investing doesn’t have a age whether you are 10 or 70 years old. Starting early gives you a huge advantage due to something called compound interest, it’s when your profit grows by itself. Say you invested 100,000PKR and with a growth rate of 50%, next year you will get 150,000 PKR with 50,000 profit. Next year with 50% growth rate you will earn 75,000 PKR as 150/2 = 75. It’s like a snowball that starts small but increases as it goes down.
💰 Compound Interest Calculator
How to get started-An easy guide
You don’t have to be a financial expert. Just learn the basics.
Types of Assets
1. Stocks (Equities)
You own a tiny part of a company. Easy Example: Buying 1 share of Coca-Cola or Apple.
2. Bonds (Fixed Income)
You lend money and get paid back with interest. Easy Example: Giving money to the government and they return it with extra after 1 year.
3. Cash or Cash Equivalents
Money or things very close to cash. Easy Example: Money in your wallet, bank account, or a fixed deposit.
4. Real Estate
Owning land or buildings. Easy Example: Buying a house, shop, or apartment.
5. Commodities
Things that come from nature and are traded. Easy Example: Gold, oil, or wheat.
6. Cryptocurrencies (Digital Assets)
Online or digital money. Easy Example: Buying Bitcoin on your phone.
2. Risk and return
Higher risk means higher return but also higher risk of loss. For example investing in a new business could make you alot of money or you could also lose it.
🎯 Investment Risk Quiz
1. How would you react if your investment lost 20% of its value?
2. Which investment approach interests you most?
🚫 Common Mistakes to Avoid
❌ Trying to get rich fast
❌ Investing money you might need soon
❌ Following random tips from YouTube or TikTok
❌ Checking your investments every day and worrying
🎯 Final Advice
Investing in your teens helps build financial discipline, patience, and a strong future. You don’t need to be rich. You just need to start with what you have and stay consistent.
”Start early, learn slowly, and grow steadily.”
Even small steps now will give you a big head start in life. So don’t wait—start your investing journey today.