The Young Adult's Guide to Investing: A Practical Guide to Finance that Helps Young People Plan, Save, and Get Ahead

By Rob Pivnick

Learn all about saving and compounding, budgeting, debt, negotiations, and more in this ultimate guide to finances and money!

It’s never too early to start saving those dollars! This extensive guide is perfect for teenagers, millennials, and even adults who want to learn more about how to handle money, banking, and investing in their future accounts. No more insecurity about the low funds in those bank accounts. Written by a financial advocate, this comprehensive guide is easy to understand and filled with fun graphics, tempting even the most uninterested teen to read and follow along. Encouraging financial independence and good saving habits, this book will teach
you concepts and skills such as:
 

• Setting financial goals
• Risk v. reward
• Diversification
• Financial advising
• Minimizing costs and expenses
• And more!

Statistically, Americans as a whole are financially illiterate; 21 percent of adults think that winning the lottery is their best chance of retirement! It is not too late to start learning how to best spend, save, and invest your money. With plenty of fun facts and basic lessons and takeaways, The Young Adult’s Guide to Investing is the perfect way to start planning your best financial future!

• Language: English
• Publisher: Racehorse
• Release date: Apr 6, 2021
• ISBN: 9781631585388

Book preview

Copyright © 2021 by Rob Pivnick.

Originally self-published in 2011 as What All Kids (and Adults, Too) Should Know About Saving and Investing.

First Racehorse for Young Readers Edition 2021.

All rights reserved. No part of this book may be reproduced in any manner without the express written consent of the publisher, except in the case of brief excepts in critical reviews or articles. All inquiries should be addressed to Racehorse for Young Readers, 307 West 36th Street, 11th Floor, New York, NY 10018.

Racehorse for Young Readers books may be purchased in bulk at special discounts for sales promotions, corporate gifts, fund-raising or education purposes. Special editions can also be created to specifications. For details, contact the Special Sales Department at Skyhorse Publishing, 307 West 36th Street, 11th Floor, New York, NY 10018 or [e-mail].

Racehorse for Young Readers™ is a pending trademark of Skyhorse Publishing, Inc.®, a Delaware corporation.

LIMITATION OF LIABILITY/DISCLAIMER OF WARRANTY. The author makes no representation or warranty, either express or implied, with respect to the accuracy or completeness of the contents of this work and specifically disclaims all warranties, including without limitation, the implied warranties of merchantability or fitness for a particular purpose. No warranty is or may be created or extended by sales, donations or promotional materials. The advice and strategies contained herein may not be suitable for every person or situation. The end user of the material contained herein acknowledges and understands that the author is not rendering legal, accounting, investing or other professional advice or services. If professional assistance is required, the end user should engage a competent professional service provider. The author is not liable for damages arising herefrom. The fact that a source or work is cited herein does not mean that the author endorses such information or its source or recommends the same. End users should be aware that Web addresses listed herein may have changed or disappeared.

Visit our website at www.skyhorsepublishing.com.

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Library of Congress Control Number: 2020930850

Print ISBN: 978-1-63158-537-1

Ebook ISBN: 978-1-63158-538-8

Printed in China

CONTENTS

INTRODUCTION

TAKEAWAYS

Chapter 1. SAVINGS

Why Save?

Global Household Savings Rates

Compounding

Chapter 2. BUDGETING, DEBT, AND SETTING GOALS

Federal Debt and Deficit

Consumer Debt

Budgeting

Chapter 3. NEGOTIATION AND MAKING DEALS

Tips/Techniques

Information is King

Chapter 4. RISK V. REWARD

How Much Risk Should You Take?

Investment Horizon

Liquidity

Asset Allocation

Asset Classes

Chapter 5. ACTIVE V. PASSIVE—WHICH IS BETTER?

Adopt a Low-Cost Strategy—Minimize Expenses

Active

Passive/Indexes

Do Not Try to Time the Market

Do Not Chase Returns—Stay the Diversified Course

Minimize Costs/Expenses

Higher Fees Do Not Mean Better Performance!

A Note on Inflation

Chapter 6. DIVERSIFICATION

Building a Diversified Portfolio

Step One: Basic Portfolio

Step Two: Adjust Bonds

Step Three: Add Real Estate Index

Step Four: Add Small Cap Stock Index

Step Five: Add Value Stock Indexes

Step Six: Add International Indexes

Chapter 7. PUTTING IT ALL TO WORK—WHERE DO I ACTUALLY INVEST?

How Do I Invest, Where Do I Put My Money, and Do I Need More Advice?

How About Financial Advisors—Are They Worth It?

When Should You Consider Hiring an Advisor?

Emotional Investing Has Its Cost

FINAL EXAM QUESTIONS

Chapter 8. MONEY IS NOT EVERYTHING

The Parable of the Mexican Fisherman and the Banker

Life is Short—Enjoy What You Do (That May Just Lead to Riches Anyway)

TAKEAWAYS

SOURCES AND CREDITS

INDEX

WORKSHEETS AND ACTIVITIES

Answer Keys

INTRODUCTION

Have you ever noticed that when you hear one of your friends saying Wanna bet? you only hear more about the bet if they won? No one brags if they lose a bet; but we always seem to know when someone wins a bet.

The stock market is pretty much the same. As a teen, you may get a job, earn money from chores or allowance, and maybe eventually go to college. And hopefully you start thinking about investing some of the money you’ve earned. As you get older you may begin to hear your friends or coworkers brag about how they doubled their money in just one week by buying some particular stock, or generally how they made a bunch of money in the stock market. And then you might think you can do the same—that you can pick a great stock winner, or that you