Bank Accounts

Perhaps some of you are saving your money in a bank. Good. You’re ahead of others. You’re getting a 3% return on your money. But there’s a problem with saving in banks—and there’s also a better way!

I have an account in the bank, so I know I'm getting interest, and I'm proud of it too. Unfortunately, some of my friends say that that's not a good way to go. Why?

Bonds

A better way to make money is to lend it to others by buying bonds. With bonds you can get a 5% to 7% return on your money.

I know now I can make money by lending to others. But are you trying to tell me that someone actually wants to borrow my money? Who would? What kinds of institutions can I lend money to?

What are bonds that I hear kids are getting as gifts?

If I lend money to someone, can I get my money back any time I want?

Well, when I let friends borrow money, I tell them that they better pay up. What happens if the companies to which I lend money can't pay me back?

If some companies don't pay back bonds, how can I find out which ones are reliable so I don't lose my money?

Stocks

Let’s shoot even higher than bank accounts and bonds by buying stocks in a profitable company. With stocks you can get a 10% to 15% return on your investment.

Exactly what is a stock?

A 10% to 15% return just by letting money sit there? You have to be kidding. Do you have any proof?

If I buy some stock and become part owner of a company, what difference can I make in the company?

Other ways to Invest

Besides bank accounts, bonds, and stocks, are there any other ways to make a profit? Are they for kids?

I want to make more money by investing in stocks and bonds, but I don’t have the expertise. How can I find someone else to pick stock and bonds for me?