CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Richia Allen
Financial Advisor
WCCU Wealth Managemet
Located at Westerly Community Credit Union
122 Granite Street, Westerly, RI 02891
Phone: 401-637-4487
Email: richia.allen@lpl.com
A surprising number of teens are fascinated with the world of investing. Why not? It’s an exciting and engaging way to earn money. And who better than you to help your kids to learn about finance?
Company financials—Have them research the revenue, earnings, and profit margins of a couple of companies they’ve chosen.
Management—Look at the company’s vision. Is it strong? Who’s in charge, and what’s their track record?
Rivals—Stake out the competition. How does the company compare?
Trends—Stress the importance of checking trends in the company’s industry and weigh how the company is positioned to take advantage.
Risk—Your child needs to understand that all investments have some risk. They need to know there is always a chance of losing money and that market volatility in response to events outside an investor’s control may lead to substantial losses.
Reassure your teen that investments remain a smart financial avenue for teens despite the risks. Your teen may reduce risk and increase potential returns by consciously choosing investments with growth potential and using sound techniques such as asset allocation and diversification. Be sure to explain these important strategies to your teen and that using them cannot guarantee against an investment loss.
The strategy you and your teen work out should start small. When first investing, your teen—or any investor—should invest only what they can afford to lose. Investing small amounts in a few different vehicles can let your teen learn the markets and get comfortable with investing without taking undue risk and potentially suffering significant losses.
Once the strategy is in place, the teen needs to stick with it. As they gain experience and confidence, they can gradually increase stock investments.
Finish your investment tutorial with this caveat: Investing is a long-term process that requires patience. Checking investments too often can get an investor caught up in short-term dips. Your teen needs to concentrate on the potential for long-term growth and avoid emotional selling or buying during momentary blips in the markets.
Remember to teach them about the need to work with financial, legal and tax professionals.
519731
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Richia Allen is a financial advisor with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Westerly Community Credit Union and WCCU Wealth Management are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using WCCU Wealth Management, and may also be employees of Westerly Community Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of, Westerly Community Credit Union or WCCU Wealth Management. Securities and insurance offered through LPL or its affiliates are:
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.