KIDS KREATIVE KORNER
After Starting His Own Business as a Teenager, This Young Man Began Studying the Market and the Best Investment Options.
By Bonnie Drew
At seventeen, Richard Williams founded a pager-repair business, Electronic Board Service, that offered growing companies a low-cost alternative to expensive pager repair. Within a short time, the service business was earning Williams in excess of $10,000 annually and the savvy teen began seeking investment opportunities. It wasn't long before he learned the ways of wise money management.
"Don't spend all of the money you make," he cautions. "I always pay my bills and put some money back into the business to buy extra parts. I also put money in savings and I invest in the the stock market." His favorite stocks are IBM and Dell Computer.
How does investing work? In order to raise money to operate, most corporations sell "shares" of ownership to the public. When you buy a share in a company, you are a stockholder. Sometimes stockholders earn money by getting paid dividends if the company makes a profit.
Stockholders also can earn money by selling their stock when the price goes up. A person who is licensed to buy and sell stock for you is called a stockbroker. Most stockbrokers charge a fee each time they transact business for a client. Williams saves money on these fees because his dad negotiated a discount with a family broker.
Before Williams started buying stock, he spent time learning how to recognize good investments. "Be an informed investor," he advises. "I like to read Investor's Weekly and check stock prices on the Internet. I also watch CNN and stay up with world events that might affect my investments."
In addition, you should always consult a registered investment advisor before you invest.
Bonnie Drew is the author of FAST CASH FOR KIDS (2nd edition), published by Career Press (1-800-227-3371). She is also the creator of the KIDS BUSINESS software for young entrepreneurs, available from Homeland Publications (713-332-9764).
Drew is also Editor of YoungBiz online magazine, published by Kid's Way, Inc., a company that helps youth prepare for business and the workplace of the 21st century. For more information, write to Kid's Way at 5589 Peachtree Rd, Chamblee, GA 30341 or call toll free 1-888-KidsWay (1-888-543-7929). YoungBiz magazine can be found at http://www.youngbiz.com
 |
|
 |
|
 |
