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Hello and welcome to another post. I really hope that things have been going well with you.
Wherever you see the above logo, then rest assured that you are in a safe place to discuss all things money. We are not conservative when it comes to talking money.
And wherever you see the above photograph with the wild afro and smile, she is the mum and brains behind Sawyerrs' House.
So, let's get started. Investing can be a scary thing to do even as an adult, let alone a child. I will give you just 1 simple way to start investing as a child. But before I do so, you may ask, "what does investing mean"?
Investing means that you take some of the money that your mum, dad, aunt or nan gave you as a gift and you loan it to someone or a company for a period of time.
In return, that someone or company promises to increase the amount of money that you gave them by 'X' amount of money - this is called 'Return On Investment'.
To get started with investing as a child, I want you to try offering to loan some of your money to friends and family that are your age. You can loan them say £5 or $5 for a period of 3 months. In return, they agree to pay you 50p or 50c for every month that your money is with them - remember this is the Return On Investment I spoke about earlier.
By the end of 3 months, you will have £6.50 or $6.50. Remember, you get to decide and set a reasonable Return On Investment - not them! You MUST also get this in writing before you hand over any money.
Before I drop my blogging pen, you may even wonder what you should do to protect your money in case your friend or family refuses to pay you back any of the money.
A cool trick is for you to ask the friend or family to hand over to you a favourite item that they own and cherish. You hold on to that item until you get ALL your money back.
I hope that you've learnt a useful investment lesson today, but please come back for some more of this. There's more that you can do if a friend or family needs your money for even longer than 3 months😃😁.
If you need 1-2-1 tuition in money literacy so that you learn even more cool ways of investing, then click Book Deborah to find out what's on offer. Once you are happy with that, go ahead and reach me via the details on the Contact Page.
Look forward to hearing from you.