Business teacher recommends learning more about financial planning

Money makes the world go round, and one of the best ways to make money is through investments. The world of investing may seem daunting, especially as a teenager. So here is some advice from economics teacher Mike Hansel about investing as a teenager.

“First of all I would recommend talking about investing with your parents and getting their permission to invest. Be prepared to present why you want to invest and the benefits of starting at a young age,” Hansel said. “Online firms such as E-Trade, Merrill, Fidelity, Schwab, etc. are a great way to invest. Most have zero fees and a teen account. A parent will need to help you set up an account.”

Hansel said investing does have its risks. “Always make sure you can pay your expenses first. Place some in savings and invest what you can. Remember, this is for the long haul and you will need to weather the ups and downs of the market. Study the terminology so you know what a P/E Ratio, Market Cap, Earnings Per Share, etc. and what they can indicate about a company’s stock. Dividends are also good. They can allow you to reinvest and buy more stock in a company without having to spend your own money.” 

And he said one of the number one rules of investing is, “Diversify, diversity, diversify. Have investments in different sectors of the economy, such as tech, retail, clothing, and beverage.”

He also advised continually learning. “The more you know, the better decisions you can make. A class such as Financial Literacy and Economics can greatly help in this area.”