Young people should take advantage of time, and start investing now for the long-term.  When doing so, they should consider these actions:

• Make use of low-cost mutual funds, exchange-traded funds and index funds to minimize administrative costs, transaction fees and commissions.
• Take advantage of tax-deferred retirement programs, which will allow them to invest pre-tax dollars to lower their current tax bill. Employers may match retirement fund contributions.
• Don’t avoid risk by emphasizing conservative investments. Taking on more aggressive investments creates greater potential for higher, long-term returns.
• Effectively manage risk with fixed index annuities, fixed annuities, and market linked CDs. Dollar-cost averaging allows for obtaining more shares at a lower cost during market downturns.

For additional information on investing by young people, click here.

Teaching Suggestions

• Have students talk to others for suggested investment actions to take.
• Have students conduct online research regarding the best investments for their life situation.

Discussion Questions 

1. What factors might a person consider when selecting investments for their life situation?
2. Describe actions people might take to increase the funds they have available for long-term savings goals.