MoneyWise.com is working hard to teach young people everything they need to know in order to get ahead financially. The website offers a lot of critical financial information in a way that shows how cool it really is to get ahead financially while you’re still young. The website offers a lot of key information on anything from which credit cards to sign up for, how and why you should invest from a young age, which bank accounts are the best bang for your buck or even just how to save extra money for a rainy day. You know, things we should have been taught back in high school.
Making Financial Literacy Fun
MoneyWise.com offers is this cool new feature that shows you how much money you would have if someone had invested $2,000 worth of stock in your name in the year you were born. Many people wonder what type of investment would bring in the most return as time goes on. So MoneyWise.com did the investigating for us and found that stocks are consistently the best investment. For example, $2,000 put away in my birth year would give me over $12,000 today if it were invested in stocks, while the same investment in a savings account would only give me around $3,500. “What we found is that stocks most often would have provided the best returns. And by “stocks,” we’re talking about the S&P 500. Our results for stocks are based on returns for the S&P 500, so our hypothetical investment in stocks is similar to putting $2,000 into an S&P 500 index fund,” says the company’s editor-in-chief and analyst, Doug Whiteman.
MoneyWIse.com isn’t here to make you feel guilty about not having invested in S&P as an infant, though. The company wants to show its users that investing is a simple. It’s also a decision that should be made sooner rather than later. MoneyWise.com also aims to make investments easier than ever by linking to a service that automates investing for you. “Today, investing in stocks — especially index funds — is easier than ever thanks to investing apps and automated investment services. With an automated manager like Wealthsimple you really can just set it and forget it,” says Whiteman.
MoneyWise.com & Investing
The world of stocks can be really confusing. Most people don’t have the time to learn about what a good investment is on their own. There are a lot of investment services there are out there today. It can be hard to figure out which one will be the best option. Services like Wealthsimple aim to make it easy for younger people to get into investing. Without having to worry about whether or not they’re making a good decision. “Based on the amount of risk you’re willing to stomach, the service uses computer programs to automatically make adjustments to your portfolio so that you’ll continuously get good returns,” says Whiteman. “If 10% of your money is in a certain category of stocks, and those stocks go down, the software does some rebalancing to put some of that money elsewhere,” he says.
The tips, tricks and tools offered at MoneyWise.com make finance a simple feat for just about anyone. To check out the tool that lets you figure out where your $2,000 would be today, check out their website here. For more information on Wealthsimple, the service that allows you to automate investments and earn money with little to no work, check out their website here.
Julia Sachs is a staff writer at Grit Daily. She covers tech, entrepreneurship and entertainment news and is based in Park City, Utah.