Hey there WeSeeders, I’m Tim, and we’re here to talk about the thing that makes the world go 'round — and sadly, it ain’t love. It’s money. In this lesson we’ll cover:
1. What you can do with money
2. Investing your money
We all know what you can do with money — for starters, you can exchange it for shirts, headphones, pizzas, and so forth. Which can be kind of fun. But besides buying a bunch of stuff, money can also be used to make more money.
That’s right, mo’ money. And that doesn’t necessarily mean mo’ problems. See, that’s where investing comes into play.
Investing your money means you don’t get to wear gold watches and tell people to keep the change. But it does mean your money has a chance to grow instead of immediately being spent on the latest videogame or app for your tricked-out cellphone.
There are different places to invest your money: there are CDs (the non-music kind, aka Certificates of Deposit), money market accounts, and savings accounts. These typically pay you around 1–2% in interest. They won’t make your money grow fast, but they’re generally considered safe and, over time, they can pay off.
But if you want to step it up to the next level, you need to step into the wonderful world of investing. And that means checking out the stock market. And since stocks typically return around 8% annually (seriously — we swear), it’s a huge step up from the safety of a savings account. Of course, 8% is the average return, so in any given year, you might make more than that… or you might make less.
And there’s the rub with the stock market — you can lose money there, and that’s something you don’t have to worry about with a savings account. So what do you do if you want to increase the amount of money you have, and you don’t want to go through the risk of potentially losing it?
That’s where WeSeed comes into play. We’ll teach you the ropes so you can start figuring out where you should invest. And then you can make your money grow when you're ready to try it for real — instead of losing it.
In our next section, we’ll cover where you can keep all that money so it’s safe and sound: the bank. That’s it for now — I’m Tim with WeSeed’s Learn section, and I’ll talk to you soon.
