VineLesson 105 · Written for kid, teen, and little
Building your investing habit
Automate a plan you can afford, then review it now and then.
A useful investing habit is making a plan you can afford and following it consistently. An automatic transfer can help you remember a planned contribution, so you do not have to rely on motivation each time. Review the amount and investments when your needs change. The system can help with consistency, but it cannot guarantee growth or prevent losses. 🔁
Words to know
4Automate
Set money to move and invest on its own, so you never have to remember.
Dollar-cost averaging (DCA)
Investing the same amount on a regular schedule, no matter the price.
Index fund / VTI / VOO
VTI follows a broad index of publicly traded U.S. stocks; VOO follows the S&P 500, an index of about 500 large U.S. companies.
System vs willpower
A routine or automatic reminder can help you follow a plan. Review the plan when your budget or needs change.
You and an adult have chosen an amount that fits your budget. Which plan sends a fixed amount regularly without needing to remember each time?
In the full lesson
- 1Make the call
Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.