Good HabitsInvesting Basics
Okay, so we've looked at why you should start investing now (time is on your side), and how it's important to invest regularly. Now you'll see why it's important to stay invested.
Pre-authorized contributions are something you can set up to make it easier to save money. Basically, it's a regular, automatic deduction from your Scotiabank account into an investment.
Looking at the Numbers
Say you got $1,000 from your grandparents when you were born, and started contributing $25 every month until you finished high school. At an annual compounded rate of return of 8%, you would have a whopping $16,203.55 by the time you're 18!
As little as $25 a month (which is just $5 - $7 per week), can go automatically into a mutual fund account every month, helping you make more money quickly and easily!
Note: if you are under 18 years1 of age, you are not allowed to invest in mutual funds directly. An adult can set up a mutual fund account as an in-trust account or RESP on your behalf.
Children under the age of majority in the province in which they reside are unable to enter into a binding contract.