How To Invest For Teenagers
Summary
TLDRThis video offers investing advice for teenagers, framed through a humorous and relatable lens. It emphasizes the importance of personal development, starting early with financial habits, and building credit. Key points include investing in self-education, understanding compound interest, and the benefits of Roth IRAs. The video uses video game metaphors to make the advice engaging, encouraging viewers to level up their financial skills. The host also shares personal anecdotes and recommends books and practical steps for managing money and building wealth over time.
Takeaways
- πββοΈ Get a haircut - a humorous but practical piece of advice.
- π‘ Invest in personal development rather than risking small amounts of money in the stock market.
- π Start reading important financial books early on to build financial literacy.
- πΌ Get a job early to understand the value of money and develop work skills.
- 𧩠Explore various activities and hobbies to discover your passion.
- π¦ Open a bank account with a high interest rate once you turn 18.
- π³ Get a credit card to build your credit history responsibly.
- π Open a retirement account (traditional or Roth IRA) as soon as possible.
- π Start investing in stocks early, preferably within a retirement account.
- π Develop good financial habits like tracking expenses, maintaining a healthy lifestyle, and being frugal.
Q & A
What is the first piece of advice given in the video?
-The first piece of advice given is to get a haircut.
Who is the target audience for the investing advice in the video?
-The target audience includes teenagers, parents looking for advice for their kids, and possibly those who have stumbled upon the video late at night.
What generational conflict is mentioned in the video?
-The video mentions Zoomers (Generation Z) destroying Millennials on TikTok and how Millennials are often criticized by Boomers for being entitled.
Why does the speaker compare life to a video game?
-The speaker compares life to a video game to illustrate that while we cannot choose our characters or stats, we can control our actions, explore, and improve our skills to make the game (life) easier and more enjoyable.
What is the recommended first step for investing for teenagers?
-The recommended first step is to invest in personal character development and boosting oneβs own stats instead of risking money in the stock market.
Why does the speaker emphasize reading, and which books are recommended?
-The speaker emphasizes reading as a way to gain knowledge and better manage money. The recommended books are 'The Simple Path to Wealth' by J.L. Collins, 'I Will Teach You to Be Rich' by Ramit Sethi, and 'Harry Potter and the Goblet of Fire' for enjoyment. For advanced readers, 'The Intelligent Investor' by Benjamin Graham is suggested.
What is the significance of getting a job at level 15 according to the speaker?
-Getting a job at level 15 is important because it teaches the value of money, helps one understand the effort required to earn it, and encourages financial independence.
Why is it important to open a bank account and get a credit card at level 18?
-Opening a bank account with a high-interest rate helps in saving money effectively, and getting a credit card helps build a credit history, which is crucial for future financial activities such as getting loans at good interest rates.
What are the benefits of starting a retirement account early?
-Starting a retirement account early, like a traditional or Roth IRA, allows money to grow tax-free or tax-deferred, leveraging compound interest to accumulate a significant amount of money by retirement age.
What is the speaker's advice on building good financial habits?
-The speaker advises tracking expenses, taking care of one's health, being frugal, and living below oneβs means. These habits help in managing money better and avoiding unnecessary expenses.
Outlines
πββοΈ Get a Haircut and Start Investing
The video begins with a humorous and outdated meme, advising viewers to get a haircut. It acknowledges the audience might be Gen Z, parents, or late-night internet surfers. The creator discusses generational differences, specifically how millennials face economic challenges and mockery from Zoomers. The video aims to provide investment advice for teenagers, emphasizing that learning these tips early in life can lead to greater financial success.
π Invest in Yourself First
Andre introduces the concept of life as a video game where you can control your character and level up by acquiring skills and knowledge. He advises against investing small amounts in the stock market due to the high risk and low returns. Instead, he suggests investing in personal development and education, such as watching tutorials and learning from experienced individuals like teachers and parents. The emphasis is on the importance of self-improvement during teenage years.
πΌ Discover Your Passion and Gain Work Experience
Andre recounts his experience of getting a job at 15 and realizing the value of money. He encourages teens to explore various interests and side quests to discover their passions and talents. By investing in their skills and trying new activities, they can set themselves up for future success. Andre highlights the importance of finding a skill that society values, as it can lead to better financial outcomes.
π³ Essential Financial Steps at 18
Upon turning 18, Andre advises teens to take crucial financial steps such as opening a high-interest savings account and getting a credit card to build a credit history. He explains the importance of a good credit score and provides tips on managing credit responsibly. Andre also stresses the importance of starting a retirement account, like a Roth IRA, early to take advantage of compound interest, illustrating the significant difference in retirement savings when starting at 18 versus later in life.
π Building Good Financial Habits
Andre discusses the importance of tracking expenses, maintaining good health, and being frugal. He advises teens to track every dollar earned and spent, using apps like Mint or Personal Capital to develop the habit. He emphasizes the importance of physical health to avoid high healthcare costs in the future. Additionally, Andre explains the value of frugality and delaying gratification for long-term financial success. He also suggests setting up a custodial account with the help of parents to start investing early.
π Join the Investing Community
In the final part, Andre invites viewers to join his Discord community to discuss investing and other topics. He provides links for signing up to investment platforms like Weeble and Robinhood, offering free stocks as incentives. He encourages teens to follow him on Instagram and promises to answer questions in the comments. Andre congratulates young viewers for taking the initiative to watch the video and encourages them to enjoy life while making smart financial decisions.
Mindmap
Keywords
π‘Gen Z
π‘Millennials
π‘Investing
π‘Compound Interest
π‘Credit Score
π‘Roth IRA
π‘Frugality
π‘Side Quests
π‘Character Development
π‘Retirement Account
Highlights
Outdated meme humor and first piece of advice is to get a haircut.
The video is aimed at teenagers looking for investing advice or their parents.
Gen Z and Millennials comparison, highlighting the economic challenges faced by Millennials.
Introduction to the importance of investing early in life.
Life is compared to a video game where one should explore and level up.
Advice to invest in personal development rather than risky investments.
Recommendation to read 'The Simple Path to Wealth' by J.L. Collins and other books for financial literacy.
Importance of getting a job at a young age to understand the value of money.
Encouragement to explore various activities and discover one's passion during teenage years.
Significance of getting a bank account and credit card at age 18.
Explanation of credit scores and the importance of maintaining a good credit history.
Emphasis on opening a retirement account, like a Roth IRA, to take advantage of compound interest.
Suggestions for building good financial habits such as tracking expenses and being frugal.
Mention of setting up custodial accounts with the help of parents for early investment.
Encouragement to join a community for financial discussions and to use available resources for free stocks.
Transcripts
wipe wipe it worked
it's a totally outdated meme by now and
it does not make any sense but the first
piece of advice is
get a haircut and if you clicked on this
video looking for investing advice for
teenagers
you're probably gen z or maybe you're
just the parent who's looking for advice
for their kids or maybe
you've stumbled on the dark corners of
the interwebs at 3am
but whichever one it is you've come to
the right place and speaking of all the
different types of generations
i just read somewhere that zoomers are
destroying millennials on tick tock
and that just isn't fair cause
millennials inherited the worst economy
known to man
we have the lowest job prospects the
least amount of money out of all the
generations
boomers think that we're entitled and
now zoomers are beating up on us
i can't start this video on adulting
until i've had my morning coffee and you
smash the like button because you owe it
to me
don't be such a hufflepuff i cannot do
this video with a straight face
this is ridiculous being a millennial is
the thing i hate and love about myself
the most
and this wasn't even bought for this
video i literally had this in my kitchen
pantry
this is embarrassing everyone knows that
us millennials were a mistake so leave
britney alone
put jokes aside let's talk about the
best investing advice for teenagers
and this really applies to everybody the
earlier on in life you hear this the
better off you'll be
i just wish this was stuff that i heard
it when i was in my teens
because i would have ended up with a lot
more money than playing cards in my bank
account but lucky me
i watch the secret
and the power of the secret compels me
to make money out of all these playing
cards
clearly real bills because uh money's
stiff like that
let's begin
[Music]
hi my name is andre and i like to think
of life kind of like a video game
except we don't get to pick the
characters that we play as or the stats
because those get assigned to us at
random but just like life you get to
control your character
and as long as you explore the entire
map and you collect all the items and
all the special pokeman like this
happy birthday pikachu which i'm really
proud of owning and as long as you grind
and level up then the game will get a
lot easier but i want you to remember
that if it ever gets frustrating or
tough
you don't just quit playing the game you
continue practicing as long as you
remember
that there is a ton of rng involved in
this game of life
you cannot influence much because the
rng preferably favors those who are born
into
elite guilds with lots of coin so the
best thing that you can do is continue
unlocking those special abilities
special skills collecting all the items
leveling up and that's when this game
will get a lot more fun so kind of think
of this video as
your video guide walkthrough tutorial so
starting with the first teen level
level 13 you might be wondering andre
i've got like 100 coins to invest
where do i put them and the answer is
wherever it's going to promise to give
you the greatest amount of returns
and if you're thinking of taking this
money and putting it in something like
the stock market
then please understand this super simple
fact whether you have a hundred dollars
or a
thousand dollars right now the best
amount of money that you can make from
this
is a couple hundred extra dollars in
just a few months but at worst
you can lose your entire principal
investment and that's not worth the risk
so instead take this money and put it
into your own character development
of boosting your stats but if you don't
have the money to do it then understand
that life
takes a different kind of currency as
well and that is visa
i'm kidding it's not a plug for visa
it's actually time
you can invest either your money or your
time but this level is very easy and
you're literally doing it right now so
watch as many tutorials as possible and
pay a special close attention
to people who look like they beat the
game a couple times that includes your
teachers
your parents and your grandparents who
literally played that game on hard mode
this is the age to learn and listen now
in level 14
i strongly suggest that you start
reading now when i was younger
i hated reading i don't know about you
but i just could not stand when people
suggested or recommended or told me what
i had to read
that's why i started with picture books
like this one
because i wasn't very bright i'm still
not but i'm moving on from picture books
it's progress
but the first book you have to read is
the simple path to wealth by j.l
collins it's going to change the way you
look at money and life
please read that book the second book is
i will teach you to be rich
by ramen setti ignore the clickbait
title of the book it's actually a really
good book
and the third book is harry potter and
the goblet of fire but that's the
millennial of me and that's actually a
really good book it's my favorite if you
want to go advanced or hard mode
then please read the intelligent
investor by benjamin graham
to give you a lot of advanced tips and
tricks about investing your money in the
stock market
when you're ready but you're not there
yet now levels 15 and 17 are some of my
favorites
and that's because we start to evolve so
don't mind the fact
that you'll be seeing some physical
changes that's pretty normal in
preparation for level 18
but in level 15 the first thing you want
to try to do
is get yourself a job i got my first job
at level 15
and it taught me the fact that i could
make money but also the value of that
money true story when i was in high
school i was flipping through this
magazine and i saw this
mercedes slk for sixty thousand dollars
and i thought
wow that's cheaper than i thought and as
soon as i got my job
i unlocked the reality skill tree and i
realized that working part-time for nine
dollars an hour i would never be able to
afford a car like that and from that
moment on
i never asked my parents for a single
thing again because i realized
the time and the value that it would
take to earn each and every single
dollar
also between levels 14 and 17 go on as
many side quests as you can
try everything except for the things you
know you shouldn't but try youtube
try tik tok try cooking try tennis magic
card issue photoshop photography this
journey will allow you to discover your
master skill or otherwise more cheesily
known as
your passion now most people will miss
this side quest
but if you can find that skill you will
set yourself up for the rest of your
life
it's almost like a cheat code i was
fortunate enough to find my special
ability at level 12.
and for the next 8-10 levels i tried to
put all of my experience points into
that one
and boost it to the max that allowed me
to travel the world
make friends with people i never thought
in a million years i ever would
which allowed me to find my career which
eventually allowed me to consult on now
you see me and work with harry potter
yeah i know harry potter's not now you
see me
but i got to work with daniel radcliffe
and as cool as those experiences were
unfortunately the world didn't place
such a high dollar value on all my
skills
so bonus points for you if you can
discover that special ability that
society places
a high value upon then you're gonna make
a lot more money than i
ever did so really think of levels 13
and 17
as levels to invest in yourself to boost
your own stats because that's where
you're gonna get
the greatest returns on your money bar
none now we've come to the most
important part of the game and that is
level 18. this is going to set you up
for the rest of the play style of the
entirety of your game
we need to collect a few key items here
so this is part of your main storyline
this is not a side quest so don't go
partying off the map and as soon as you
turn
level 18 the first thing you want to do
is get a bank account in your own name
look for something with a high interest
rate on your savings accounts
and this means that by parking your
money here your money is going to end up
making you more money allah compound
interest style which is what we want but
here are a few of my personal favorites
ally bank or cit bank now right now
they're both yielding around one percent
which
isn't very much but these rates
fluctuate up and down depending on the
economy
the market rate which is usually set by
the final boss
the federal reserve so right now
everything's about the same so don't
chase it too much because if you find
something that's maybe
point zero five percent more that's only
five dollars per year more
for every ten thousand dollars you have
invested the second item on this list is
something that you
absolutely need asap and something that
i didn't get until level 24 which is
kind of embarrassing to admit
and that is a credit card and for the
longest time i thought people with
credit cards were just irresponsible
with money because they bought things on
plastic
because they couldn't afford it and i
was so wrong because what credit scores
do is they allow
other people to see how responsible you
are with other people's money and if
you're good
they'll let you use their money at good
interest rates and if you think like me
well i don't want to borrow money if i
want to buy a car or a house i will save
for it but even
if you have all that money to just pay
it in cash you should really never do
that
for reasons that i will get to in
another video but as soon as you hit
level 18
trust me get yourself a credit card
because this side quest
takes years to fully finish in order to
build your credit history personally i
recommend going with something like a
secured credit card or this uh
discover it's secured it's kind of like
the gold standard if you don't have
history and it's pretty cool because it
gives you two percent cash back on
different categories
and one percent cash back on everything
else but pro tip
if you're a student in college instead
of getting that one get yourself
the cash back student edition of that
card
it's the same idea but it's going to
give you better perks and the idea of
this
is to get a high score of 750 or higher
and we could do all that within eight
months to one year if you can follow
these next few steps
number one make sure to always pay your
bills on time
and never carry a balance because if you
do you're going to pay more money in
interest alone than all the rewards that
you're going to get in return
if you could do all that then 35 of your
score will be accounted for just paying
on time but if you miss your payment for
whatever reason
immediately pick up the phone and call
the little number on the back of a
credit card
and ask them for forgiveness usually the
first missed payment
is going to be okay and it can be
forgiven as long as you call and ask and
number two is the utilization rate which
accounts for a huge thirty percent of
your score
now if you can keep your utilization
rate of thirty percent or lower
you'll do just great for you have a
thousand dollar monthly spending limit
spend no more than three hundred thirty
three dollars and thirty three cents but
if you wanna be ultra conservative and
do what i did and get there far
quicker then utilize no more than ten
percent or a hundred dollars or less in
this case
now you could literally just buy one
little tiny thing like a pack of gum
or just some gas and in that case your
utilization rate will be in the single
digits
and that will improve your score
dramatically and number three is your
length of history which accounts for
15 of your credit score which is why
it's so important to do this
as early as possible now for me this is
what drags my score down the most
and if i had started when i was 18 my
score would easily be over 800 by now
but pro tip cheat code if you can have
your parents co-sign on their credit
cards for you
then you will inherit their credit score
if they have an excellent score
i couldn't do this because my parents
didn't have a good score but your
mileage may vary
if you can do these three things you
will easily and quickly beat this side
quest
the third item on this list is something
you need to get asap as soon as you hit
level 18
it's probably the most important part of
this video and that is a retirement
account
it could be traditional or a roth ira
now think of these accounts like savings
accounts
except instead of putting your cash in
here what you're putting in here is
mostly stocks
and the reason you want to do this is
because it protects your money
from taxes in the case of a traditional
ira you pay no taxes today
but you will pay taxes later on the
money that it's grown into
in the case of a roth ira you pay taxes
up front
but no taxes later in life when you
withdraw those millions that you're
ready to retire on if you have no idea
which one you want to pick
you can actually have both a traditional
and a roth but remember you can only
contribute
six thousand dollars per year and you
can contribute it down the middle
however you want fifty fifty one year in
one
one year in the other doesn't really
matter now if you could do this early
look how much coin you can end up with
assuming a growth rate of eight percent
which is what you can expect from the
stock market
now assuming you started to max out your
roth ira account
at level 18 for three years only three
years until level 21 when you're fully
evolved into an adult you will have
ended up
with 781 thousand dollars which is an
insane amount of money
at retirement that's amazing if you had
done this at 31
then you would have ended up with 287
000 at age 67 which is almost two and a
half times less
all because you started just 13 years
later which isn't that much of a
difference
that's the power of time and compound
interest at work so pause this video if
you're 18 years or older and go and make
that account because you're literally
losing money right now
ready pause okay i know you didn't
actually pause this video but as soon as
you finish watching this video or as
soon as you turn 18
please go do that and let me know in the
comments below if you actually did and
the fourth item you need to collect
is to get yourself a stonk and
preferably put it in a retirement
account
it's going to be one of the most
complicated things you think you'll ever
do because there's thousands of
companies to select from and half a
dozen character play styles to choose
you can be a growth stock wizard a real
estate investment mage
or even a defensive dividend investor
and the list goes on and on
i actually made a video about that which
i will link in the description below the
video
it's super cool and you can select
exactly which character is best for you
and while you're level 18
one of the most important things that
you can do is get into the habit
of building good habits and the first of
these good habits is to track
your expenses i cannot emphasize this
enough
every single dollar that you make start
writing it down every single dollar that
you spend
write it down write it down on a piece
of paper just to get used to it manually
or you can immediately download an app
like mint or personal capital
those apps track everything you make and
everything you spend
and they get you into the habit of
tracking all of the progress because
nothing ruins progress than not knowing
where you've been because you have no
idea where you're going
this is just as true for building wealth
as it is for anything else
the second habit you should build for
yourself is to take care of your body
and your health
might seem obvious but as soon as you
level up in life you start to forget
about the skill tree more and more
and before you know it your abs melt
away slender physique
goes away and your metabolism just
vanishes and goes somewhere else in fact
if you compare what i look like today
versus my first few videos in 2019 it's
like watching someone's metabolism
get thick but if you don't train your
character regularly
healthcare costs will continue to expand
and before you know it
it's going to be your number one expense
in retirement and the third good habit
is to be frugal and live
well below your means and i don't mean
be cheap because
being cheap is just not wanting to spend
money for the sake of it and never
getting any enjoyment or value out of
life but being frugal
is to take that same dollar and stretch
it to the most of your ability
but don't fall into the trap of saying
life is short
live a little actually statistically
life is not short you're gonna live to
be a very old person someday
statistically speaking and if you can be
happy with less you'll succeed a lot
earlier
this is one of the most difficult skills
to build but if you can learn how to
delay your gratification
you are scientifically proven to end up
with more money i'm going to give you a
cheat code of my very own
it's a little privileged because not
everyone can use this but if you have
parents that you can convince to set you
up with a custodial account then you can
give them
your money that you earned from your job
and they will invest the money for you
and as soon as you turn 18
and you level up you will inherit that
account and you'll know exactly what to
do
because you watch this video and you
smash the like button the other cheat
code i will leave is a free link to my
discord channel where we talk about
investing and everything in between
it's an incredible community and i'll
give you three more free stocks
three more free cheat codes sign up to
weeble or get your parents to do it with
a custodial account
you get a free stock up to two hundred
fifty dollars and if you fund your
account one hundred dollars
you'll get another free stock that up to
fourteen hundred dollars and i will be
paid
but you don't have to use my links just
go get those free stocks and get your
third free stock from robinhood
simply for signing up love you all thank
you so much for watching this video you
can follow me on instagram
i post from time to time and i'll see
you back here on monday and friday
please use this video as a reference
guide come back to it anytime
let me know in the comments down below
if you have any questions i'll try my
best to get back to them
and i try to answer all the comments
that you guys leave thank you so much
for watching again and if you're 18
or younger then congratulations for even
watching this video and getting this far
you are much farther ahead than all of
your peers and all of your friends
it's unbelievable that you're here good
job go out there go level up
just make sure to enjoy all the levels
in between because life goes fast
[Music]
bye
[Music]
it'd be easier for me if i turn away to
flee
but there's something holding on
[Music]
today
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