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How investing works

Lesson 27 · Written for kid, teen, and little

The whole playbook in 6 rules

Everything you've learned, on one card.

The idea

Everything you've learned points to a few useful habits: start when you can, plan regular saving, spread investments across different companies, stay calm when prices drop, and skip the hype. These habits can help you make more consistent decisions and manage some risks, but they cannot guarantee a profit. 🏆

A

Words to know

5

Diversify

Spread your money across many companies so one bad pick can't sink everything.

ETF

An exchange-traded fund holds investments and trades on an exchange. Broad stock ETFs can spread money across companies; other ETFs have different holdings and risks.

VTI / VOO

Broad index funds — VTI holds the whole US market, VOO holds the ~500 biggest US companies.

Compounding

When your money earns money and those earnings start earning too — it snowballs over time.

Roth IRA

A retirement account with contribution rules and special tax treatment. Qualified withdrawals can be tax-free; eligibility and withdrawal conditions apply.

Try it — no accountPut it in order

Order these rules from most important first to least important last. (An ETF is a basket of many companies; diversified means spread out across lots of them.)

Use the up and down arrows to arrange them in order of impact on your wealth.

    In the full lesson

    1. 1Put it in order

    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.

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