Valentina Fuentes, Reporter
@valentfcourant
As a high school student, you’re probably making money in some way—whether it’s through a part-time job, babysitting, or even getting an allowance. But while working is an important skill and part of life, what if I told you that there was a way to make your money work for you? Instead of spending hours working (though it’s a good skill to learn), you could put part of your earnings into investments that grow even when you’re not working. This is the power of investing, and the best part is, you don’t have to wait until you’re older to get started.
I learned the power of investing firsthand when I was in 6th grade back in 2020. One day, I was scrolling through Tiktok and saw a video of someone who made money investing. At the time, I was obsessed with slime and wanted more money so I could buy new ingredients. So, with this goal in mind, I went to my dad and told him I wanted to invest. I had about 210 dollars saved up, and together we ended up deciding to start with index funds like the S&P 500 and QQQ, since they are proven stable, and a good way to invest long term.
In one day, I had made my first few cents, and though a small amount, I fell in love with seeing my money go up. Over the years, I started putting in 30 dollars a month consistently, or sometimes a little more depending how much money I made babysitting, doing chores etc… Fast forward to today, my portfolio has grown to over 2,000 dollars. The best part? $600 of that was from passive gains—my money grew while I did nothing. Even on days when the market dips, I know that if I make smart choices, my money will keep rising in the long run. And after reading this, you will know how to make those choices too.
So, why should you start investing today? Investing is one of the most powerful tools for building wealth over time, and the earlier you begin, the more your money has the potential to grow. But it’s not just about the money. The skills you develop through investing will serve you well throughout life.
So, let’s go into what steps you can take to start your journey.
Step 1: Set Your Budget
Before you start investing, it’s essential to understand how much money you can comfortably invest. The first step is setting a budget. Track your income from any part-time jobs, allowances, or other ways you make your money. Next, track your expenses—things like going out, food, gas, clothes, etc… This is the money that you want to be able to spend per month.
By doing this, you’ll see how much money you can set aside for investing each month without jeopardizing your everyday expenses. Even if it’s just 10 or 40 dollars a month, those small amounts can really add up over time. To track your spending and savings, you can use a simple method like creating a spreadsheet or jotting down your goals in the iPhone Notes app. For a more organized approach, the Wallet app on your iPhone has a built-in budgeting tool that helps you keep track of your income, expenses, and see exactly how much you can comfortably invest.
Step 2: Learn the Basics of Investing
Now that you have a budget, it’s time to understand the basics of investing. You don’t need to become an expert overnight, but here are some key terms and concepts to get started:
- Stocks: When you buy stocks, you are buying a small ownership stake in a company. As the company grows, so does your investment.
- Bonds: These are essentially loans you give to companies or governments, and they pay you interest in return.
- Index Funds and ETFs (Exchange-Traded Funds): These are collections of stocks or bonds bundled together. They are ideal for beginners because they allow you to invest in many companies at once, lowering risk.
- Compound Interest: This is when your money earns interest on both your original investment and the interest that has already been added to it. Over time, this creates exponential growth.
By understanding these basics, you’ll feel more comfortable making decisions about where to invest your money. And, if you make smart investments, you could end up with very successful results.
Take Apple as an example: if you had invested just $100 in Apple stock 24 years ago, that investment would have grown to over $58,000 today. This kind of growth shows the incredible power of long-term investing.
Step 3: Open an Investment Account
To invest, you need an investment account. If you’re under 18, you’ll need to open a custodial account. This is an account that your parent or guardian manages until you turn 18. Many financial institutions offer custodial accounts, and they don’t require a large initial deposit.
While your parent or guardian will manage the account initially, once you turn 18, you’ll have full control over it. In the meantime, your parents or guardian can help guide you in choosing the right investments.
Step 4: Decide What to Invest In
Now comes the fun part—deciding what to invest in. There are a few solid options to consider, especially for beginners:
- S&P 500: One of the easiest and safest options to invest in. The S&P 500 tracks 500 of the largest companies in the U.S., and historically, it’s delivered an average annual return of about 7-10%. By investing in this fund, you get exposure to many top companies like Apple, Microsoft, and Amazon. This diversification reduces your risk and is a great option if you’re starting out.
- Exchange-Traded Funds (ETFs): These funds allow you to buy a range of stocks or bonds all in one purchase. Many ETFs track specific sectors, industries, or indexes (like the S&P 500).
- Individual Stocks: If you’re feeling confident, you can start investing in individual companies. Keep in mind that this requires more research and carries more risk, but it can also offer higher returns if you pick the right stocks (like investing in Microsoft back when one share was worth $13).
- Bonds: For a lower-risk option, you can invest in bonds, which pay interest over time. You could consider a government bond or a corporate bond fund.
Step 5: Use Your iPhone to Track Your Investments
Once you’ve started investing, it’s important to track how your investments are doing. While there are lots of investment apps out there, you can also use a simple, built-in tool to track your investments right from your iPhone.
I personally use the Wallet app on my iPhone. This app can help you keep track of your portfolio, including stocks and bonds. You can add your investments as a “pass” (something to store them in) and watch their performance. This is a great way to stay informed without getting overwhelmed by complicated investment apps or services.
Also, The iPhone’s Stocks app is preloaded on every iPhone and gives you real-time stock market data, including the performance of individual stocks and index funds. Simply search for your stock or fund and add it to your watchlist, or even add it as a widget so you can see exactly how much your investments are going up or going down depending on the day. By staying up-to-date in this way, you can monitor how your investments are doing and make adjustments if needed, all without leaving your phone.
Starting to invest as a high school student doesn’t have to be complicated. By making small, consistent contributions and learning along the way, you can set yourself up for long-term financial success.
