The First Steps for Investing

Who Can You Help?

I took a friend to lunch Friday and discovered that she has not the slightest idea how to start investing in the stock market. She is 22, single, part time student and works part time. Her family never talked about money and since she is a waitress, she has never been exposed to 401-k’s. She is not the lone ranger; think about how many people may opt out of working for corporations after graduation-we could have a lost generation of investors because no one mentored them. This is where all Personal Financial Bloggers can help-You have heard of the day once a year called Take Your Child to Work? I propose we take a friend to Scottrade or whatever firm you feel comfortable with!

So, this week I’m taking my friend to lunch and then to Scottrade to show her the ropes. Think about this: if you have never had any exposure to the financail world you may have many questions such as:

  • How much money do I need to start with
  • Does the firm accept cash
  • How do I make subsequent deposits
  • Should I have my boyfriend/girlfriend on the account with me
  • What documents are needed to open an account
  • What’s best, stocks, mutual funds, ETF’s or options

The whole process can be very overwhelming and extremely intimidating. I feel obligated to pay it forward and show someone my world and the financial riches that it can bring down the road.

I hope you’ll join me in this effort and take some one under your wing and expost them to a very confusing and potentially very rewarding world.

Do you have additional suggestions on how we can help our friends?

 

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Dansette