Top 75 Ways Young Adults Can Begin Investing

Welcome to the Investing for Young Adults! If you’re new to managing money or looking to sharpen your financial skills, this is for you. It’s packed with 75 fun and interactive activities designed to teach you about the world of saving, investing, and growing your money. From understanding how compound interest works to setting smart financial goals and making your first investment, we’ve researched it all!

The following activities are created to help you build confidence with your finances, no matter where you are on your journey. Whether you’re saving for the future, learning how to invest, or figuring out how to budget, this book will give you the tools to make informed financial decisions and start growing your wealth.

By the end of the following activities, you’ll have a solid foundation of financial literacy that will serve you well in your personal and professional life. Let’s dive in!

What is Money?

Goal: To understand the role of money in your life.

Worksheet:

• Instructions: Write down five things that money can be used for in your life. Be as specific as possible!

Use of Money	Examples

Your Financial Values

Goal: To identify your financial priorities.

Worksheet:

• Instructions: Rank the following financial values from 1 (most important) to 5 (least important).

Financial Value	Rank (1-5)
Saving for the future
Enjoying the present
Supporting family or friends
Education and self-improvement
Charitable donations

Setting Your Financial Goals

Goal: To create SMART financial goals.

Worksheet:

• Instructions: Fill out the table below with one financial goal for the next year, then make sure it meets the SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound).

Goal	Why it’s important	How you will measure success	Deadline

Budgeting Basics

Goal: To understand how to create and stick to a budget.

Worksheet:

• Instructions: List your monthly income and expenses. Create a simple budget and track where you’re spending.

Income Source	Amount
Job	$
Allowance	$
Other (e.g., Gifts)	$
Total Income	$

Expense Category	Amount
Rent/Room & Board	$
Utilities	$
Food	$
Entertainment	$
Saving/Investing	$
Total Expenses	$

The Power of Compound Interest

Goal: To understand how money grows over time through compound interest.

Instructions: Fill in the blanks using the following formula: A = P(1 + r/n)^(nt)

Where:

• A = the amount of money accumulated after n years, including interest.

• P = principal amount (initial investment).

• r = annual interest rate (decimal).

• n = number of times the interest is compounded per year.

• t = number of years the money is invested for.

Example: If you invest $1,000 at an annual interest rate of 5%, compounded yearly, for 10 years, how much will you have at the end?

Principal ($)	Interest Rate	Time (years)	Interest Compounded (per year)	Final Amount ($)
1,000	5%	10	1

Types of Investment Accounts

Goal: To learn about the different types of investment accounts.

Instructions: Match the following investment accounts with their descriptions.

Investment Account	Description
1. Roth IRA	A retirement account that grows tax-free, and you can withdraw contributions anytime without penalties.
2. 401(k)	Employer-sponsored retirement account that offers tax-deferred growth.
3. Brokerage Account	An account that allows you to buy and sell stocks, bonds, and other assets.
4. Traditional IRA	A retirement account where contributions may be tax-deductible, but withdrawals are taxed.

ACTIVITIES:

Risk vs. Reward

Goal: To understand how risk affects your potential return on investment.

Instructions: Rank the following investment options from least risky to most risky, then explain why you ranked them that way.

Investment Option	Risk Level (1=Least, 5=Most)	Reason for Ranking
Stock Market
Bonds
Real Estate
High-yield Savings Account
Cryptocurrency

Creating Your Investment Plan

Goal: To create a personalized investment strategy.

Instructions: Answer the following questions to create your investment plan.

Question	Your Answer
What is your primary financial goal?
How much money can you invest each month?
What is your risk tolerance?
What type of investments are you interested in? (stocks, bonds, real estate, etc.)
How long do you plan to invest for?

Risk Management Strategies

Goal: To understand how to reduce risk in investments.

Instructions: Write down 3 ways you can manage risk in your investment portfolio.

1. 
   
2. 
   
3. 
   

The Importance of Diversification

Goal: To learn how diversifying investments can reduce risk.

Instructions: Imagine you are creating an investment portfolio with $10,000. How would you allocate it across these different types of investments?

Investment Type	Amount ($)
Stocks
Bonds
Real Estate
Commodities
Cash Savings

Saving for Retirement

Goal: To develop a strategy for saving for retirement.

Instructions: Fill in the blanks to create a plan for your retirement savings.

Retirement Account	Monthly Contribution ($)	Expected Return (%)	Time to Retirement (Years)	Projected Balance ($)
401(k)
Roth IRA
Traditional IRA

Understanding Mutual Funds

Goal: To understand how mutual funds work.

Instructions: Answer the following questions about mutual funds.

Question	Your Answer
What is a mutual fund?
How does a mutual fund reduce risk?
What are the types of mutual funds available?

Setting Financial Milestones

Goal: To break down large financial goals into manageable steps.

Instructions: Write down one long-term financial goal and break it down into smaller milestones.

Long-Term Goal

Milestone 1

Milestone 2

Milestone 3

Milestone 4

HERE ARE 75 WAYS TO BEGIN INVESTING:

1-10: Starting with the Basics

1. Start with a High-Yield Savings Account A simple way to start saving while earning interest.

2. Open a Roth IRA A tax-advantaged retirement account that allows your investments to grow tax-free.

3. Start Contributing to a 401(k) If your employer offers a 401(k) with a match, take advantage of it for long-term growth.

4. Open a Traditional IRA Another retirement account that offers tax-deferred growth.

5. Invest in a Certificate of Deposit (CD) A low-risk investment with guaranteed returns, perfect for short-term savings.

6. Utilize a Robo-Advisor A low-cost, automated way to invest in diversified portfolios.

7. Build a Simple Stock Portfolio Invest in individual stocks of companies you believe in for potential growth.

8. Start Investing with Micro-Investing Apps Apps like Acorns round up your purchases to the nearest dollar and invest the difference.

9. Create an Emergency Fund First Before investing, set aside 3-6 months of expenses in a savings account to protect against emergencies.

10. Use Dollar-Cost Averaging Invest a fixed amount regularly, regardless of market conditions, to smooth out market volatility.

11-20: Stocks and Bonds

11. Invest in Index Funds A low-cost, diversified way to invest in the overall market or specific sectors.

12. Buy Exchange-Traded Funds (ETFs) ETFs are like index funds but trade like stocks, offering diversification and liquidity.

13. Invest in Dividend-Paying Stocks Stocks that pay dividends can provide a steady income stream in addition to capital appreciation.

14. Purchase Bonds or Bond Funds A more conservative investment offering stable returns, particularly U.S. Treasury or municipal bonds.

15. Invest in Growth Stocks Invest in stocks of companies with high potential for growth, though they can be riskier.

16. Diversify with International Stocks Spread your risk by investing in foreign companies or global ETFs.

17. Create a Stock Portfolio with ETFs and Index Funds Combining low-cost ETFs and index funds can offer growth with reduced risk.

18. Invest in Corporate Bonds Corporate bonds typically offer higher returns than government bonds, but with increased risk.

19. Buy U.S. Treasury Bonds A safe, low-return investment backed by the U.S. government.

20. Consider Peer-to-Peer Lending Investing through platforms like LendingClub allows you to lend money directly to individuals or businesses.

21-30: Real Estate and Alternatives

21. Invest in Real Estate Through REITs Real Estate Investment Trusts (REITs) allow you to invest in real estate without owning property.

22. Crowdfunding Real Estate Platforms Participate in real estate crowdfunding to invest small amounts in larger real estate deals.

23. Start Investing in Rental Properties If you can afford it, purchasing a rental property offers passive income through monthly rents.

24. Real Estate Crowdfunding Platforms like Fundrise and RealtyMogul allow you to invest in real estate projects with minimal capital.

25. Purchase Rental Property with Partners Pool resources with others to invest in rental property and share the profits and risks.

26. Flip Houses for Profi tBuy, renovate, and sell homes for a profit, though this requires knowledge of the real estate market.

27. Invest in a Real Estate Syndication A syndication lets you pool funds with other investors to buy larger properties, offering high returns.

28. Consider Commercial Real Estate Investing in office buildings, retail spaces, or warehouses can be lucrative, but it often requires substantial capital.

29. Buy Land Purchase land in developing areas and hold onto it as its value appreciates over time.

30. Invest in Farmland Farmland can be a solid long-term investment that offers returns through both land appreciation and agricultural revenue.

31-40: Cryptocurrency & Emerging Markets

31. Start Investing in Bitcoin and Ethereum Cryptocurrencies like Bitcoin and Ethereum are becoming increasingly popular as alternative investments.

32. Explore Altcoins Invest in smaller cryptocurrencies, but understand that they are highly volatile.

33. Use Cryptocurrency Exchanges for Trading Platforms like Coinbase, Binance, and Kraken allow you to trade various cryptocurrencies.

34. Invest in Cryptocurrency ETFs Bitcoin ETFs allow you to invest in crypto without directly owning the coins.

35. Consider a Cryptocurrency IRA Some retirement accounts allow you to invest in digital assets like Bitcoin and Ethereum.

36. Start Staking Cryptocurrencies Some cryptocurrencies offer staking, where you earn passive income by locking up your coins for a period of time.

37. Invest in Decentralized Finance (DeFi) Participate in the growing DeFi space, where you can earn interest and dividends from crypto assets.

38. Consider NFTs (Non-Fungible Tokens) NFTs are digital assets that represent ownership of unique items, often in the art and gaming sectors.

39. Invest in Startups via Equity Crowdfunding Platforms like SeedInvest and Republic allow you to invest in early-stage startups.

40. Explore Crowdsourced Venture Capital Pool funds with other investors to provide capital to emerging businesses through platforms like AngelList.

41-50: Automating & Simplifying Investments

41. Set Up Automated Contributions to Investment Accounts Automating your contributions to retirement or brokerage accounts helps you invest consistently.

42. Use Robo-Advisors for Diversified Portfolios Robo-advisors like Betterment and Wealthfront automatically manage your investments based on your goals.

43. Invest with Acorns or Stash Use micro-investing apps to invest spare change or make small, regular investments.

44. Set Up Direct Deposit to Retirement Accounts Have a portion of your paycheck automatically directed to your retirement fund each month.

45. Consider a Target-Date Fund for Retirement These funds automatically adjust your asset allocation as you approach retirement age.

46. Invest in Socially Responsible Funds (ESG) Choose investment funds that focus on environmental, social, and governance factors.

47. Use Dollar-Cost Averaging Consistently invest a fixed amount in a particular investment, regardless of market conditions.

48. Utilize a Custodial Account For parents or guardians, setting up a custodial account can help teach young adults about investing.

49. Start Saving Through a 529 College Savings Plan Invest for education expenses through a tax-advantaged 529 plan.

50. Use a Dividend Reinvestment Plan (DRIP) Reinvest dividends automatically to grow your portfolio over time.

51-60: Learning & Education

51. Take Online Investing Courses Platforms like Coursera, Udemy, and Khan Academy offer courses on investing basics.

52. Read Investment Books and Blogs Expand your knowledge with books like The Intelligent Investor by Benjamin Graham and Rich Dad Poor Dad by Robert Kiyosaki.

53. Follow Financial News Keep up with investing news via outlets like CNBC, Bloomberg, or financial YouTube channels.

54. Join Investment Forums and Communities Participate in online communities like Reddit’s r/investing or Bogleheads to learn from others.

55. Attend Investment Webinars and Seminars Many financial institutions and educators offer free or low-cost webinars.

56. Seek a Financial Mentor Find a more experienced investor who can provide guidance and advice.

57. Use Investment Simulators Practice your skills without risk by using platforms like Stockpile or MarketWatch’s Virtual Stock Exchange.

58. Subscribe to a Financial Newsletter Stay informed on investment opportunities and trends by subscribing to resources like Morningstar or The Motley Fool.

59. Listen to Investment Podcasts Learn from experts while commuting or exercising with podcasts like "The Investopedia Express" or "The Motley Fool Money."

60. Participate in Investment Competitions Some platforms offer simulated investing challenges where you can compete and learn.

61-70: Real Estate Investment

61. Invest in REITs (Real Estate Investment Trusts) These allow you to invest in real estate without owning property.

62. Consider House Hacking Buy a multi-unit property, live in one unit, and rent out the others to cover your mortgage.

63. Crowd Invest in Real Estate Platforms like Fundrise and RealtyMogul let you pool funds with others to invest in real estate.

64. Flip Houses for Profit Buy, renovate, and sell houses for a profit, though it requires substantial expertise.

65. Rent Out Property via Airbnb If you have extra space, turning it into a short-term rental can be profitable.

66. Start Investing in Commercial Real Estate While requiring more capital, commercial properties can offer high returns.

67. Invest in Raw Land Purchase land with future development potential, holding it until its value increases.

68. Invest in Vacation Properties Purchase a property in a desirable location and rent it out to vacationers.

69. Purchase Real Estate Through Syndications Pool resources with others to invest in larger real estate deals.

70. Invest in Real Estate Funds Real estate funds allow you to invest in property markets with lower capital investment.

71-75: Alternative Investments

71. Buy and Hold Collectibles Invest in art, rare coins, or vintage items that increase in value over time.

72. Invest in Precious Metals Gold, silver, and platinum have historically been stable investments.

73. Buy Cryptocurrency Invest in digital currencies like Bitcoin or Ethereum.

74. Start a Side Business Use your skills to create a side business and grow it into a source of passive income.

75. Purchase Royalties or Intellectual Property Buy the rights to intellectual property or royalties from existing products or music.

These 75 ways to begin investing offer a variety of methods for young adults to explore depending on their interests, risk tolerance, and goals. Whether you’re starting small with a savings account or diving into real estate and cryptocurrency, there’s an investment option for everyone.

Get the full eBook on Investing, here.