Kathiann M. Kowalski - Be Smart about Investing: Planning, Saving, and the Stock Market

Invest Your Money Wisely!

With $100 in your pocket, you could buy new jeans, a pair of shoes, and a couple movie tickets. You might still have some left over. But what if you took that $100 and invested it instead. In ten years, that $100 might turn into $1,000even $10,000! Saving, planning, and smart investments can make your money grow. It might not be as much fun as spending it, but you'll be much better off in the future. Be Smart About Investing will get you started on the best ways to save your money, learn about the stock market, and plan your financial future.

About The Author

Kathiann M. Kowalski received her bachelor's degree in political science from Hofstra University and her law degree from Harvard Law School. She has written several titles for Enslow Publishers, Inc.

As a junior high school student, Danielle saved money from gifts so she could buy a laptop computer. A few years later, savings let her buy an iPhone.

Its so exhilarating to know that the thing I use every day was something that I myself had bought, said the New York teen. Danielles experiences show how saving money now can help you buy things in the future.

Eric worked summer jobs at regional theaters near his Utah home. About 90 percent of his paychecks went into a teen savings account.

I didnt really want to have a job during school, Eric explained. If I had spent all my money during the summer I would have been quite poor throughout my senior year of high school. Summer job savings likewise provided spending money when Eric started college.

Saving provides a financial cushion for times when money is tight. It relieves a lot of stress to know you have enough money to get by for a little while, Eric said.

Saving also helps handle unexpected events, or contingencies. When Erics computer suddenly needed a new video card, savings paid for it.

Investing, or using money to make money, is yet another reason to save. Some investments pay interest. Others pay out business earnings as dividends. Some types of investment also appreciate, or increase in value.

Danielle and Eric would not have saved any money if they spent all their earnings or monetary gifts. Saving happens only if you spend less money than you have coming in.

You might try to save a set percentage of income. Or, consider how much you would like to save by a certain date and then determine how much to set aside each week.

Use a budget to plan how you get and use money. You can save money, spend it, or give it away. If youre saving less than you need for your goals, revise your budget. If increasing income isnt practical, find ways to spend less.

Saving isnt always easy. In the short run, it means going without some things. In the long run, however, saving can let you buy things you might not otherwise be able to afford. Saving also provides some financial security. Together, both factors can make your life better.

GOOD CENTS

Using money for one purpose means its not available for other uses. For any financial decisions, consider the opportunity costs. How else could you be using the money? What are the pros and cons of any particular choice?trewq

For example, spending $15 this week for a movie and snack afterward lets you have fun with friends now. However, it leaves $15 less for sports gear you want to buy next month.

NON CENTS

Saving isnt only for adults with high-paying jobs. The longer you put off saving, the harder it will be to meet your financial goals.

Saving $10 per week will give you more than $1,000 to use two years from now. Delay a year, and youll need twice as much each week to save the same amount. In addition, youll miss any interest the money could have earned that first year.