#saving #investing #SummerJobs #stocks
It’s summer, and students (college and high school) are getting jobs as lifeguards, cooks etc. that pay an average of, say, $10 a hour.
In practical terms, most of those students will sock away a good bit of what they earn to pay for college, or some other higher education.
But Rubicoin, an educational investment app., calculated what you could do in the future if you decided to invest that money in the stock market.
Adam Shell wrote a short piece for USA Today on the study. The article also was published June 8, 2018, in The Atlanta Journal-Constitution.
Rubicoin calculated how much money a worker earning $10 an hour in a 25-hour workweek for 13 weeks, each summer for the past four years, Shell writes.
“If they invested half of their before-tax pay equally on Aug. 31 each year in the four FANG stocks (Facebook, Amazon, Netflix and Google), the $6,500 investment since 2014 would be worth $15,899 today, Shell quotes Rubicoin. If a student favors a bigger bet – investing in Netflix alone – it would have been worth $22,639, or $19,544 if they invested in just Amazon.
Certainly, these FANG stocks have skyrocketed recently. Doing that now, when they are at high prices, would be impractical. Doing it then, when their prices were relatively low, would have been a big risk for a student.
Perhaps planning your financial future would be better after your education is finished. Every dime you earn should be saved for the expenses for school – unless, of course, you come from a wealthy family and can do what you want with what you earn. Most students, however, are not in that position.
So, here’s another thought: what if you could take a percentage of what you earn in ONE summer, invest it in something that might give you the kind of bright financial future that no one will take away from you? A small investment, plus some part-time effort on your part throughout your life, could lead to an income stream that could allow you to never worry about money again.
There are several such ventures out there that could do that. To check out one of the best, message me.
There are few financial advisers who would recommend that a student invest a chunk of his summer income in stocks – despite their potential – would be a big risk.
Young investors should start out conservatively. They should move gradually from a bank savings account – get out of that as quickly as you can – to conservative funds, to stocks with some potential as your nest egg grows.
The important message from Shell and Rubicoin is to start saving your money while you are young. The more you can do at a young age, the more you will have as you get older.
Remember that the job you think is secure now may not be so in the future. Having the discipline to save and invest carefully, with the proper advice, will hopefully prevent devastation later in life.
In short: when you are off from school in the summer, work (more than 25 hours a week, if you can). Use that money to invest in your education. When your education is finished, continue the pattern of saving a certain percentage of your income, progressively investing over time.
If you use the money before retirement, make sure it is for something like buying a house. Don’t blow it on vacations and other non-durable items. Keep saving for a retirement that could come before you want it to.
Remember: the little things you do when you are young will give you more options in the future.
Peter
Tag Archives: Google
WHAT WE LEARN IN HIGH SCHOOL
“When I think back on all the crap I learned in high school, it’s a wonder I can think at all.”
Paul Simon lyric from “Kodachrome”
#HighSchool #learning #education
What did you learn in high school that you use today?
Perhaps you use some household math. Perhaps, if you took vocational courses, you use what you learned in auto mechanics, machine shop etc.
Most of us, though, would be hard pressed to think of much that we use today from our high school learning.
As it turns out, high schools were designed more than a century ago to produce efficient workers who could follow instructions, according to Ted Dintersmith, venture-capitalist-turned reformer.
“Henry Ford did not need creative, bold innovative assembly-line workers,” Dintersmith said.
Maureen Downey, education columnist for The Atlanta-Journal Constitution, took on the topic of high schools in a January 2016 column. She interviewed Dintersmith as part of it.
Now that the U.S. economy has changed from manufacturing to innovation, have high schools changed with it? Downey asks.
Downey points out that most of us believed that basic jobs, such as truck driving and delivery services, were immune to change as technology advanced. But Google’s self-driving car and Amazon Prime Air delivery drones are changing that.
So that begs the question: will high schools change the way they educate to conform to the changing economy, and the changing technological requirements?
Today, a high school education is not good enough, in many cases, to land a good-paying job. Even some who graduate college are finding they cannot parlay their brainpower into an economically exhilarating career.
So will high schools become irrelevant? Will some college curriculums become an expensive luxury?
Let’s break down the concept of education. Throughout most of our years in school, we learn “things.” We were expected to spit back those “things” on tests, to get our grades. Now, with technology, the “things” we were taught are available at our fingertips. What we really need to know is how to take those “things,” turn them first into ideas and then into action. In other words, gather your “things,” go forth and innovate.
It’s tough to put a finger on those jobs that will never go away. Perhaps some of you have had jobs you thought would never go away, but have. Were you replaced by a machine? Did what you do become irrelevant to the company as technology changed? Or, more likely, did the company just find it too expensive to keep you, so it figured out a way to do without you?
All those “things” you learned help you in trivia games, but they don’t move you forward in a changing world.
Let’s look further into colleges. We are starting to hear that the liberal arts is virtually useless in terms of finding one a job. We are hearing that the STEM programs (science, technology, engineering and math) are the only really employable fields to get into. But we all know that not everyone is cut out for those fields. So what is a person who wants to study the arts to do?
There are many ways to earn money while one pursues his artistic passion. For one of the best, visit www.bign.com/pbilodeau. You may find a way to work full time on your passion, and part time on your fortune.
We will always need people to do basic jobs. But those jobs hardly create lucrative careers. Are you learning to think the way innovators do? Or, are you just learning “things,” or how to follow orders?
Schools will eventually have to catch up with the rest of the world. In the meantime, if your school isn’t doing what you think is right for you, use your time outside of school to make things right by you.
Peter