There are millions of investors in America and you can be one of them. The following chart displays a list of requirements for participation. Every investor faces the same requirements.
You need to be able to read, write, and use arithmetic. The best place to learn these skills is School. Don’t quit School before graduation.
You need advice on how to invest money. Do your research well. Bad advice will cause you to lose money. Get good advice from people you trust such as librarians, school teachers, authors of books, and family members.
People under 18 years of age (“minors”) need the written consent of their parent (or guardian) to invest money in mutual funds, stocks, and bonds.
Social Security Number
Investors need a social security number to open investment accounts and pay taxes. Call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) or visit the social security website.
Holders of investment accounts must have an email address. If you don’t have a computer at home, try using the public library’s computers. Ask the librarian to help you obtain an email address at the library’s computers. Memorize your new email address and password.
Banks (and some brokerage firms) offer savings accounts that allow you to save money with protection against theft. Brokerage firms (and some banks) offer brokerage accounts that allow you to make investments. You need both kinds of accounts. Both accounts require an application that contains important information about you including your signature. Keep a copy of the application in a safe place where other people can’t read your new account number and personal information.
People usually need at least $100 to open a savings account or investment account. This amount varies from place to place.
In addition to the minimum deposit, banks and brokerage firms may also charge service fees. Shop around for the best service at lowest cost.
Banks and brokerage firms will send statements to your email account. Read the statements to make sure that the banker and broker aren’t making mistakes with your money. Keep the statements in a safe place so that you can report your earnings on tax forms to the government.
At the beginning of every year, investors may have to report their earnings to the government. The report is made in writing on a tax form and the public library has tax forms for you. You will need your social security number and information from your statements to fill in the forms. If you need help with tax forms, call the Internal Revenue Service (1-800-829-1040) or visit the IRS website.
DON’T DROP OUT OF SCHOOL; get a good education!