Investing Can Get You Free Money!
Saving
Why is college and saving for college important? My Dad's StoryMy father graduated from high school and began college at a two-year school that fall. His major in college was engineering.
At that time, his tuition was $12,500 for the full two years. His total debt with books, and other necessary college items, was about $20,000.
Less than a year after graduating, he was hired at Toyota Motor Manufacturing. If my father had not attended college right out of high school, he would not have the qualifications to work at Toyota.
He has continued to move up in the company because of his college degree. There are people at his work who are still in the same position they were when he started.
Recently, my father decided to go back to college to major in business management. He's enrolled in a four-year public university.
The combined cost of his tuition will be more than $42,000 by the time he graduates. This cost does not include his books, computer, and other materials.
By going back to school, he will be able to work his way further up the ladder of success at Toyota.
CloseMy parents helped me understand by showing me how to save for small things first.
It's hard to save for expensive items when you're that small, so I saved for items like video games.
Every time I had money to save, I would think to myself that I was saving it for my reward, which was the video game.
As I got older, I started saving for college and realized the video games weren't as important.
By investing, you can get free money. Here's an ExampleIf you invest $200 every month and earn 2% in dividends or interest you will have earned a little more than $26 in a year, just in interest.
You earn interest on the money you invest, plus interest on the interest. It's called compound interest.
You have to work to put that $200 in your savings account, but the compound interest is free money!
CloseOne of the most important terms is compound interest. It's the reason why everyone says, "You should begin saving at a young age!"
Find a savings plan or mutual fund to invest your money in, because you will get free money. Yes, that's right, I said free money.
It means that when you invest, you will earn interest on the money you start with—the principal—and you will earn interest on interest.
My mom helps me run a “can crusade” at my school.
How to Run a Can Crusade
We take trash cans with lids, cut small holes in the lids, and ask the teachers if they will kindly place their soda cans in these recycling trashcans, instead of just throwing them out.
On Fridays, my mom comes to school to empty the recycling can and we go to our county recycling center.
It depends on your state, but you can earn about 70 cents a pound in Kentucky. This may not seem like a lot, but if you don't recycle cans at all that's 70 cents a pound you don't have.
CloseEarning money
Where do you get money to invest in the first place?
My parents are both hard workers and they try to teach me the value of a dollar.
I have jobs throughout the year that help me earn toward my future.
I live in a rural area and there aren't many kids around, so I am able to help out my neighbors and make money:
- I shovel snow in the winter.
- In the spring, summer, and fall I mow lawns and rake yards.
- Year round I help babysit.
By working for money, I appreciate things more. I like helping my neighbors and family with odd jobs because I know that it will pay off in the future.
I appreciate the things that I've worked for.
If you aren't interested in working to save toward your future, start saving soda cans and other aluminum products. This is also good for the environment because you are recycling.
Some of my friends think that my parents are hard on me because they make me work and don't just hand me money. However, I am thankful that my parents care enough about my future to teach me at an early age what smart investing can do for me.
You might not think that learning about money is interesting. But once you see a piece of paper with an amount of money that belongs to you, and not your parents, you'll see that it's exciting to work, earn, save, and invest!
True or False: Andrew Jackson had a scar on his head for the majority of his life.
Click Andrew's head for the answer.
TRUE: He received it a punishment from a British soldier for not cleaning the soldier's boots.
contributed by
Shawn
Age 11
Georgetown, KY
07/09/09
06/19/09
06/10/09
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Arizona Central Credit Union
What makes credit unions so great? Members like you.
Every dollar you invest in your credit union earns you money while other members borrow it.
When you're ready for a loan, other members' savings will be there to help you out at the lowest possible cost.