Of all of the personal finance concepts that people should know, I think investments are one of most misunderstood concepts out there. This is backed up by the fact that “just 17 percent of students knew that investing in stocks are likely to produce higher returns over the next 18 years than savings bonds, savings accounts and checking accounts.” With that sad fact out of the way, I thought it would be a good idea to do a simple introduction to investing over the next week.
The definition of investment is something that grows in value over time. But there isn’t just one type of investment. There are stocks, bonds, mutual funds, index funds, exchange traded funds, and more. This can all get really confusing.
In this series at The Financial Student, we’ll look at the different types of investments. What they are, what’s unique about them, their risks and rewards, and everything else.
By learning what types of investments are out there, you’ll understand how you can earn money while managing risk and not lose sleep every night.
