As a minor, you have limited resources and legal abilities which can limit possible cash making opportunities. I myself have scoured the internet to understand what I can realistically do to build capital (or just make money in general.) I want to share what I’ve done so far to start building my wealth.
Now I’m not saying these will make you rich or you’re suddenly going to wake up with 100k, but it can give you ideas on how you can start your financial journey.
1.) Get a W-2 Job or Gigs
So if you’re starting from scratch clearly you need to build up something. I personally started working with my parents and got paid helping them with their business. If you don’t have that resource then start I would suggest looking for an entry-level job. This could vary from barista to receptionist; it doesn’t matter just get started. If that is also not an option do some classic gigs like lawn mowing or selling your old stuff.
2.) Invest In Index Funds
Now that you have some type of income stream, you can invest. The process to do this may or may not be complicated depending on your starting point. In my case, my family already had a Fidelity account so they opened a UTMA (basically a trading account for minors) so I can invest my earnings.
I would suggest researching about different index funds and what they each bring to the table. In very simple terms, index funds follow a certain market, the S&p500, for example. That market holds many types or sectors of stock; Apple for modern tech, Gamestop is in multiple but gaming in my example. Taking the s&p500 example, they have showed a steady above average return in the market or in your case your investments would mirror the returns of the s&p500.
3.) Save
Save, save, save. Literally. Since, I’m assuming you’re a minor, you probably can’t invest in real estate yet which does a similar thing to savings accounts with compound interest but slower. When you save, the money you deposit will slowly grow over time to a bigger sum then you put in. For example, if you put 1k in a savings account and it has a .06 APY (average APY as of 2021) and you contribute 100 every month, then in 10 years it will have bumped to 13k. Ta-da! Savings can be an amazing starting point as a minor because you have no bills or expenses that you need to pay. You could and should save more than 50% of what you make to set yourself up in the future.
Bottom Line
This is all just suggestions of easy starts, there are hundreds of things you can do to build wealth at a young age. These are just things I do, I wouldn’t want to suggest doing something that I myself don’t have experience in, but that doesn’t mean you shouldn’t try everything you can now. You have all the time and financial freedom RIGHT NOW if you start a business and it doesn’t work? So what you lost a small lump sum, as a minor you have people who legally have to take care of you so use it to your advantage. You can change the course of your life if you start really thinking about your financial future.
Financially Independent Adolescents 