If you’ve found yourself scrolling through an increasing amount of content regarding finances, you’re not alone. Many creators are taking to popular platforms to share their knowledge of stocks, cryptocurrency and plenty of ways to ‘make your money work for you’ – the question is, how easy is it?
In short, it’s more achievable than ever before. As a follow-on from our recent piece surrounding financial literacy, we want to help you take your money further, making sure you can start investing smarter, and earlier.
Traditional fiscal education has previously been viewed as being inaccessible to the masses, but thanks to an abundance of information and resources available online, young people around the world are getting into investing – with more than 70% of retail investors being under 45.
While many of us are keen to grow our wealth, taking the first steps can often be confusing to navigate. Yet in today’s world, where the cost of living is rising, pensions are changing, and we’re expected to live longer, understanding the many avenues to manage and grow your money is becoming an essential life skill.
It’s time for you to get a slice of the pie
For decades, investing was something mainly done by the wealthy and educated – buying stocks, trading bonds, or planning for retirement rarely crossed the minds of many. Today, free-trading apps, investment platforms, and social media have made it easier than ever to join the party with just a few taps on your phone.
As a result, millions of young people are diving into the stock market, seeing it as a key part of their future financial success. In Europe and the UK, where retail investing has traditionally been lower, there’s a push to encourage young people to start thinking about their financial futures and take control of their finances.
But that doesn’t mean you should dive right in straightaway. Not knowing the basics can lead to risky decisions, bad investments, and in some cases, significant loss. By starting to gain a better understanding of compound interest, diversification (spreading your money across different investments), and the risks of high-interest debt, you can start your journey in smart investing – making informed decisions, and avoiding hype-driven trends.
So, where to get clued up?
Many people learn about finance the hard way – by making mistakes. But, as already mentioned, finding information and guidance has never been easier. There’s a wealth of guidance out there for you to benefit from (and not all of it is mind-numbingly complex).
Social media
Let’s face it – most of us aren’t reading finance textbooks in our free time. But short, engaging content on TikTok, YouTube, or Instagram could be a more appealing place to start. Financial influencers are already breaking down complex money topics in simple, relatable ways – some recommended channels to follow come from Hayley Eich, Mark Tilbury, Sasha Yansin, Damien Talks Money and The Compounding Investor.
Investment apps
Clear some storage space, because investment apps are a great way to discover how easy it is to get going.
An ideal app for beginners is eToro, which not only offers commission-free trading across numerous avenues, but an elusive social-trading feature – which essentially means you can follow the moves of more experienced investors, learning plenty of tricks along the way.
Another is InvestEngine, which focuses on low-cost, ETF (exchanged trading fund)-based investing, offering both managed and DIY portfolios. For beginners seeking a hands-off approach, managed portfolios basically take the work off your shoulders, allowing you to invest in diversified packages that cover various markets.
Speaking of hands-off, Moneybox is an app that simplifies investing by rounding up your everyday purchases to the nearest pound and putting the spare change into diversified portfolios – offering a great way to ease into investing without significant upfront capital.
Finally, a good app (and name) to know is Hargreaves Lansdown, the UK’s largest investment platform. The app itself offers an in-depth knowledge hub perfect for beginners, as well as an extensive range of assets to consider.
Learn on the job
Another thing to look out for is whether your university or workplace have any support frameworks in place, with many offering access to a range of financial education opportunities. Alongside Workplace Pensions, some employers also offer Share Incentive Plans and Workplace Individual Savings Accounts.
Your thoughts are worth more than a penny
It goes without saying that investing can be a powerful tool for building financial security – but it’s important to remember that it comes with risks, especially if you don’t have the right knowledge. Never forget that no two investors are the same – and your ultimate deciding factors should be your financial circumstances, level of understanding, and what you want to achieve.
If you’re thinking about investing, start small, do your research, and don’t be afraid to ask questions. Understanding the basics now can help you make smarter moves for years to come.
Written by James Cummins – Lifestyle Features Editor
