Why Investing* Early is a Game-Changer for Teens
Financial literacy is an essential life skill, and it's never too early to start learning about money. Investing can be a powerful tool for long term wealth building but also for learning a healthy approach to money and finances that will benefit you for life.
Spark interest and curiosity: everything starts with their desire to know and learn more. This is the key for them to become proactive in a learning journey.
Get familiar and build confidence: reduce common barriers to start, such as being overwhelmed or scared of losing it all.The fear of the unknown can be replaced with the confidence to make informed decisions.
Create Habits: learn from reviewing the ups and downs overtime, practise patience and create a routine that promotes healthy financial habits (e.g. contributing to savings, tracking an investment portfolio).
Understand the power of compound interest: Compound interest is earning interest on your interest. It's a powerful force that can help you grow your wealth exponentially over time. For example, let's say you start investing $20per week when you're 16 years old. If you earn an average annual return of 9%, your investment will be worth over $1 million by retirement at age 67**.
Drip: Your Gateway to Investing
Drip is a mobile app that makes it easy for under 18s to start learning with real investments and parental controls. Drip is a micro investment app, with zero commissions and a minimum of $5 to get started
The experience of using Drip is a learning journey that starts with the basics of investing. Educational content like quizzes, a glossary, an investing calculator and rewards for learning inspire kids to build up their financial literacy. Learning with Drip is hands-on experience that also fosters offline interactions, sparking family conversations at home.
Getting Started with Drip
If you're ready to start, here are a few simple steps:
1. Download the Drip app.
2. Create an account and set up your child’s profile.
3. Top-up your account.
4. Start investing & learning together.
Drip is a great way for teens to learn about investing and build wealth for the future. Download the app today and get started!
Here are some additional ideas:
Starting early. Although nothing is guaranteed, the sooner you start investing, the more time your money has to grow.
Investing regularly. This could mean having a plan to invest a certain amount of money each month or week.
Diversifying your portfolio. Have you ever heard the saying “Don't put all your eggs in one basket”?
Being patient. Investing can be a long-term game and having real expectations is key. The market will have ups and downs, but the most important step in this journey is to learn and educate yourself!
This information was prepared by Drip Invest as part of BetterLabs Pty Ltd (ABN 26620 505 615, who is an authorised representative of Cache Investment ManagementLtd (ACN 624 306 430 AFSL 514 360) (Cache). Cache Multi-Class Investment Fund is issued by K2 Asset Management Ltd, as disclosed in the Product Disclosure Statement(PDS). All information is general information only and does not take into account your personal circumstances, financial situation or needs. Before making a financial decision, you should read the relevant PDS and Target MarketDetermination (TMD) to consider whether the product is right for you and whether you should obtain advice from a professional financial adviser. All investments carry risk.
*All investments carry risk.
** That is considering a 9%return per year.
- In the last 30 years (as Jun 2023), Australian shares (ASX All OrdinariesIndex) have returned 9.2% and US shares (S&P 500) have returned 10% – with lots of ups and downs in between
- Past performance is not a reliable indicator of future performance.
- There is no guarantee that the return of the next 30 years will be the same, better or worse than the past 30 years.- All investments carry risk.
***Other costs and fees may apply. Read PDS for details.
