Now You Know: A Teen's Guide to Investing

By: Azzura Alifia

Edited by: Harlina Fajulah

"Little by little, a little becomes a lot." 


Have you ever heard of this proverb? If you have, you must have associated it with financial matters like money and savings, right? As a curious teenager, have you ever considered making investments for your future? If so, let's dive deep into some familiar terms related to the word “investment”!

  1. Stocks

Based on its name, investing in stocks is a way to become a partial owner. For instance, owning stock automatically grants you the status as a shareholder and part-owner of the company. Intriguing, isn’t it?

As an investor, you can earn money from dividends that companies pay to their shareholders, and benefit from the increase in the stock's value as depicted in the graphs. Interestingly, the phenomenon where people closely monitor stocks is because of their hope for a significant increase in stock value. However, this is beyond our control as it is driven by market systems. Does this pique your interest? 

2. Crypto

You are likely familiar with this term as well. It gained widespread attention in 2017. Cryptocurrency is a virtual currency or digital money that can be traded from one person to another without approval from a centralized authority, such as a bank or central government. It can be used for purchases or as an investment. Additionally, remember that most cryptocurrencies aren't entirely anonymous, and you can enhance privacy by using a VPN for crypto trading.

3. NFTs

NFTs or Non-Fungible Tokens are a part of cryptocurrency that represent unique digital assets or distinct pieces of artwork, such as media or digital content. These tokens are stored on the blockchain to establish ownership and verify authenticity.

Now that you know about some types of digital investing, let's move on to the benefits of utilizing them. Here are some benefits that you’ll reap by initiating investments during your teenage years :

1.Stay Current in the Digital World:

It is undeniable that the digital world plays a pivotal role in the future. As teenagers on the cusp of adulthood, staying up-to-date with various digital aspects, including investment opportunities, is crucial. This knowledge equips you with the intricacies of investments, protecting you from falling prey to scams.

2. Secure your Financial Future:

Embarking on digital investments is an investment in your life. Envision participating in digital investments to secure your financial future, alleviating worries about money down the line. This approach offers a win-win solution while augmenting your financial literacy. For most people, finances are the grand source of stress and it even contributes to heightened rates of depression and criminal activity. Enhancing your financial literacy can mitigate these challenges and bolster your confidence in handling financial matters.

3. Facilitate Teaching Opportunities: 

Who isn’t familiar with boot camp these days? These events are designed to educate teenagers in various subjects, particularly within the STEM domain (Science, Technology, Engineering and Mathematics). Moreover, hosting such events can provide you with an additional source of income.

Safety measures for digital investments:

1. Verify the website:

This is one of the crucial things to ensure when you decide to participate in digital investments. Make sure the website’s URL begins with "https" instead of "http". An "https" URL  guarantees the website’s authenticity.


2. Implement two-way verification on your account:

Similar to the security measures taken when logging into your email, enable two-way verification for your digital savings account. This often involves receiving codes via email or phone. While it may seem meticulous, it significantly enhances security, especially when using shared devices.


3. Use your own Wi-Fi or tethering:

When it comes to utilising public Wi-Fi, your data is susceptible to unauthorized access due to its open nature. To bolster security, ensure that you only use your private Wi-Fi networks or Tethering so your data can be saved when logging into your digital savings account.

Now that you are equipped with insights into the world of investments, what are your thoughts on starting your investment ventures at your current age? Sounds interesting, right? Moreover, if you plan to commence investing as a teen, remember to discuss it with your parents as their guidance will keep you on the right track. Best of luck on your investment journey!