Hi, I’m a 17-year-old female who is eager to start investing, but I don’t know how (due to circumstances) and where to begin.
Here are some things to know about me aka the circumstances:
1. Despite being Japanese, I grew up in a different country, so I’m still a beginner when it comes to speaking Japanese.
2. I currently don’t have a job, which is due to reason number 1.
3. My parents manage my bank account. I don’t have control over it, which makes sense since I’m still not working.
I have a couple of questions:
1. Do I need a bank account and a source of income to start investing?
2. I received 30,000円 (in cash) as a birthday gift from my dad. Is this enough to start investing? I want to make more money with it.
I would appreciate any tips you have for me, as I want to help my parents and learn how to be financially independent before I become an adult. Thank you so much.
by jiminsbrat
8 comments
It’s great that you’re starting to learn about investing already.
At your age and situation, I think the best place to invest your gift money is into yourself.
Consider purchasing and reading “The Simple Path to Wealth” from JL Collins. Talk to your parents and other adults about opening up a NISA account once you’re able to.
Stay far far away from gambling dens like crypto currency until you understand how it works. Never touch binary options.
Safe stocks at your age with a steady but essentially guaranteed market increase, basically how boomers would invest lol (coca cola, Amazon etc)
Good for you getting into the financial game at a young age but… Why? Live your life kid and worry about this shit in 5 years once you’re through with university 😅
Parents have to open an account. I recommend trying all the crazy shit now when you have a small amount of money rather than when you have big girl money and blowing up your account will make you sad
Day trading, penny stocks, zero day options, gold/commodities, leveraged funds etc. You’ll lose all your money but will learn a lesson about not doing stupid things. Then do value investing
You need to wait until youre 18 to open up your own brokerage account. So just keep putting money in your bank account until then.
Once you can, start easy. Invest in bluechip stocks. Sony, Honda, etc. You can’t go wrong with those. But you need to be patient. Look at their price charts. Never buy high. Because you’ll end up selling low.
Look into certificate of deposits (CDs) that pay out good interest. CDs are literally risk free. You commit money for x months and receive interest AND your principal. In america, the CD is 5%. No idea what it is in Japan though. But if it’s less than 3%, just stick with blue chips.
Finally, consider a mutual fund. All you do is throw money in a mutual fund and based on the kind of fund, you get money back. There’s no thinking involved because someone else manages the buyung amd selling of stocks.
The most important thing you can do right now is learn how to save money, complete your education, acquire a marketable set of skills and find a safe, affordable place to live. Trading public stocks is no better than gambling and you don’t have access to genuine investment opportunities right now, like owning a stake in a private business. Work hard, spend wisely and network until you can cooperate with other high value people.
It’s great that you are excited to start investing. Learning this as early as possible should be encouraged. Most of the Japanese employees in my office are 40+, and none have investments beyond perhaps a home and their pension.
Time is on your side as a youngster… the suggestion to look at a mutual fund is not a bad one, but recommend considering growth funds in industries that interest or excite you and that you’ll be inspired to learn more about. Risk is higher but potential upside is also higher. Recommend getting exposure to US companies via an investment vehicle like this too to hedge against the ever-weakening JPY… wouldn’t be a bad idea to learn a bit about other asset classes too.
Not sure if there are specific requirements to open a NISA account that would prevent you from exploring this, but as a tax exempt vehicle that you can trade in and out of with no early withdrawal penalties, it’s a pretty good option.
Would probably be tough to convince your parents that taking a portion of money to look at bitcoin or ethereum, but that could be educational. DYOR and size your risk accordingly… there’s a halving coming up and most think the price will take a dip after for various reasons. Maybe start by watching and noting the news and price action. Be good to do that for any investment you’re considering. Good luck!
Some brokerages offer minor accounts but parents have to open them and have at least some control over the account. E.g. https://site1.sbisec.co.jp/ETGate/WPLETmgR001Control?OutSide=on&getFlg=on&burl=search_home&cat1=home&cat2=service&dir=service&file=home_sogoaccount_underage.html#03
> Do I need a bank account and a source of income to start investing?
Not as such, but brokerages will ask about your income and may limit your use of risky products if your income is low.
> I received 30,000円 (in cash) as a birthday gift from my dad. Is this enough to start investing? I want to make more money with it.
Investing it beats letting it sit in a bank account, and most of the big brokers don’t charge trading fees or any other flat fees, so you probably can. Bear in mind that investing is not a way to get money quickly and even the best investments carry some risk. Anything offering a return of more than about 7% a year is almost certainly a scam, and plenty of things offering less return than that are also scams or just regular bad ideas.
Particularly right now, USD/JPY is at an almost unprecedented level, and stocks around the world are at high levels, so I’d say practically anything you could buy is carrying some risk of a crash. Investing is the best way to build wealth in y long run, but you need to be patient, and you shouldn’t invest money that you’re not prepared (both financially and emotionally) to have go down.
You are very filial and wonderful!
Get a bank account and My-number-card and open a NISA account. Investing is possible even if you are underage or unemployed.
You can also receive rewards by going through certain websites or referrals.
Investments can start with very low amounts, but it takes a lot of time for the fruits to bear.
I find it most effective to invest in yourself.
(Read a book, get a certification, appreciate art, take a small trip, buy a comfortable chair, try something you’ve never eaten, whatever)
Deepen your areas of interest and concern and expand your possibilities.
In fact this also helps with stock investments.
If, after careful consideration, you conclude that investing in stocks is really what you want to do most,
Remember to always consult with your parents before you invest.
Avoid leverage, margin trading and meme stocks. Haha