If you’re a teenager, you probably spend a lot of time wondering how to make money online. You may have heard about ways to earn quick cash through web surveys or by taking online jobs. While these are certainly viable options, there are other more sustainable ways to make money online as a teen. If you’re looking for a long-term, passive income stream, you might want to consider investing in stock markets or commodities. There are several reputable advisors and fund managers who can help you navigate the complex world of investing. You may be wondering, How does investing work? Let’s dive into an enlightening discussion on the topic of how to make money online as a teen.
The Growth of Online Investing
A major driver of the current economic expansion is the rise of online investing. According to industry researchers at Pitch Perfect, online investing accounted for 12% of global equity trading volume in 2018 and is projected to reach 24% by 2022.
The proliferation of stock market trading apps for mobile devices is further fueling this growth. App-based investing enables quick buying and selling of stocks and raises the ease-of-accessibility of the stock market. As a result of the increased ease of access and the proliferation of smartphone apps, more people are able to invest online. This, in turn, is driving up demand for unique investment vehicles such as collectible crypto coins and traditional real estate investing.
The Benefits of Investing
Let’s examine the benefits of investing for teens. First, it’s important to keep in mind that the bulk of your investment return will arrive in the form of regular, passive income. So, while it may not seem like a high-yield investment at first glance, the benefits of a passive income stream outweigh the risks. With less stress and more flexibility, investing is a great option for teens who want to achieve financial independence.
Passive income allows you to spend more time with your family and pursue your passions. Instead of working for a boss and putting in 40 hours a week, you’re now able to work for yourself and make money online. If the thought of generating revenue without having to go to school or live in an adult housing complex appeals to you, investing may be a solid option. Keep in mind, though, that the returns from any investment are typically volatile and can decrease as well as increase in value.
Where Should I Invest?
If you’re a teen looking to invest, the key question is: Where should I invest? There are several popular choices for teen-oriented investment vehicles, including:
- Real Estate
Each of these investment types provides unique benefits and challenges. Before choosing an investment vehicle, it’s important to consider your goals and what kind of return you need. You may also want to consult with a financial advisor who can help you choose the right investment vehicle for your particular needs.
In our next article, we’ll discuss some of the key differences between cryptocurrencies, stocks, and real estate investing. We’ll also provide some insight into how to choose an investment vehicle that meets your needs.