How to Invest As a Teen With $0

Finance-Focused Summary (Ages 13–18)

Core Investing Principles (repeated across ages)

• Time in the market is the biggest advantage: investing earlier lets your money compound for longer.
• Avoid skipping steps in the creator’s checklist—missing steps can delay progress.
• Invest long-term to benefit from compound interest.

---

Age 13: Start Investing via Custodial Accounts

Framework / Steps

• Use a custodial account because the teen cannot invest independently.
• UK option: Junior Stocks & Shares ISA
  • A parent/guardian can invest up to £9,000 per year.
• Use a simple, low-cost index approach
  • The creator references an S&P 500 index fund (diversified across “just over 500” large US companies).

Key Numbers / Performance Claims

• S&P 500 historical average yearly return: 12.58% over the last 10 years (as of end of May 2024).

Timeline / Account Control

• Age 16: can begin managing the junior account.
• Age 18: can begin withdrawing money (if desired).

US Custodial Account Options Mentioned

• UGMA and UTMA
  • Unlimited contributions, but gift tax risk if contributions exceed $18,000 in one year.
  • UTMA can also invest in real estate and fine art (vs. UGMA).

Instruments / Tickers / Venues

• S&P 500 index fund (no specific ticker provided).

Disclaimers

• “I’m not a financial advisor” and “shouldn’t be taken as financial advice.”

---

Age 14: Build Income and Discipline (Cash “Stash”)

Focus (Not Direct Market Investing)

• Build funds to invest later by:
  • Trying different ways to earn money (e.g., cleaning with pressure washers, competitive sports—discipline noted).
  • Saving with the idea of a “stash” (don’t spend it all on short-lived items).

Finance-Relevant Caution

• Avoid the pattern: save for months → spend it all.

---

Age 15: Increase Savings Capital (Cash Flow for Future Investing)

Framework / Steps

• Ask for cash instead of short-term consumer goods.
• Get a Saturday job (including retail behind a counter).
• UK note: apply for a provisional driving license at 15 years 9 months.

Instruments / Tickers

• None.

---

Age 16: Invest Primarily in Skill-Building Equipment (and Avoid “Fake Gurus”)

Framework / Steps

• Use a 2-year runway to stack skills that increase future earning power.
• Prioritize equipment/tools over speculative learning or scams.
• Avoid buying courses from “fake gurus.”
• Prefer learning through a community.

Key Numbers / Example

• Example equipment investment:
  • An iMac for $500 to learn editing and Photoshop.

Instruments / Tickers

• None.

---

Age 18: 7-Item Financial Checklist

#1 Open Bank Accounts

Steps / Structure

• Open two accounts:
  1. A Current/Checking account (money flows in/out)
  2. A High-interest savings account for an emergency fund of 3–6 months of living expenses
• Recommendation:
  • Use two different banks to make saving harder to spend.

Key Numbers / Yields

• Chase savings interest: 4.1% (as stated in the video)
• UK example: Monzo (current account)
• US examples: Ally Bank or Bank of America

---

#2 Get a Credit Card (Build Credit Without Interest)

Steps

• Use the credit card for normal spending.
• Pay off in full every month.

Goal

• Build your credit score, which can affect mortgage eligibility and interest rates.

---

#3 Open an Investing Account (Tax-Advantaged)

Tax-Advantaged Account Types Mentioned

• USA: Roth IRA
• UK: Stocks & Shares ISA
• Canada: TFSA
• Australia: supers (likely referring to superannuation)

Mechanism / Features

• Some investing apps may offer fractional shares
  • Example given: invest as little as $1 instead of paying $220 for an Apple share (no ticker provided).

Platform + Promotional Offer (Disclosure)

• Platform mentioned: Trading 212
• Promo/code: “Tilbury”
  • Creator claims Trading 212 offers a free stock worth up to £100
  • Mentions the possibility of more free stocks through friend invites
• Also mentions a practice mode using fake money with real market data.

---

#4 Carefully Consider University

• Claim: “Yes and no”
  • For careers like medicine/nursing/teaching, it can be necessary.
• Warning:
  • Don’t pay for programs that don’t lead directly to employable roles.
• Possible student debt mentioned:
  • £60 to £100k and a question of whether it’s worth it.

---

#5 Avoid Bad Debt (with Mortgage/Strategic Debt Caveats)

Framework / Distinction

• Debt can be acceptable if used strategically:
  • Mortgage to buy real estate (potentially increases long-term net worth)
  • Debt to start a business (if it works)
• Avoid:
  • Consumer debt (example: cars financed)

Key UK Statistic

• 2.2 million UK drivers finance their cars (called “shocking” in the video).

---

#6 Start a Side Hustle

Steps / Focus

• Use service-based side hustles with low startup cost, such as:
  • copywriting
  • video editing
  • videography
  • web development
  • community management
• Emphasis:
  • Build a high-income skill; otherwise focus on learning one thing deeply.

---

#7 Invest for the Long Term (Compound Interest Example)

Framework / Assumptions

• Example assumes:
  • Investing $250/month starting at age 18
  • Into a Roth IRA or Stocks & Shares ISA
  • Average return: 8%
  • Growth until age 65

Outcomes Stated

• Starting at 18: ~$1.5 million tax-free
• Starting at 28: ~$679,000
• The difference:
  • Extra 10 years roughly more than doubles the outcome (for the later starter, it’s less than half).

Instruments / Tickers

• Apple referenced by share price example ($220)—no ticker given
• Roth IRA, Stocks & Shares ISA named (account wrappers, not specific tickers)
• No specific ETF or bond tickers provided

---

Disclosures / Disclaimers (Explicitly Stated)

• “I’m not a financial advisor” and “this shouldn’t be taken as financial advice.”
• Promotional disclosure:
  • Trading 212 sponsorship/promo mention and free stock offer.

---

Presenters / Sources

• Presenter: the video creator (name not provided in the subtitles)
• Sources / platforms mentioned: Vanguard, S&P 500 index fund, Trading 212, Monzo, Chase, Ally Bank, Bank of America.