Definition: Investing involves using money to purchase assets that will increase in value over time, with the goal of generating a return. This can include stocks, bonds, real estate, or digital assets like cryptocurrency. For young people, investing early can result in significant long-term wealth accumulation through the power of compound interest and capital appreciation.

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Types of Investments:

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• Stocks: Shares of ownership in a company. Stocks tend to offer high potential returns but come with increased risk. You can start investing through platforms like Robinhood or E*TRADE.
• Bonds: Debt securities issued by governments or corporations. Bonds generally offer lower risk and returns compared to stocks. Consider using TreasuryDirect or Vanguard.
• Cryptocurrency: A digital or virtual currency that operates independently of central banks. Cryptocurrencies are highly volatile but can offer high returns. Get started with exchanges like Coinbase or Binance.

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Why it’s important: Investing helps individuals grow wealth and build financial security, offering long-term benefits if approached with knowledge and strategy.