Investing your first $100

The idea in plain words

Investing means putting money into something that can grow, such as a company or a fund, and accepting that it can also fall. Compound interest is why starting early matters: growth is earned on your original money and on past growth. Diversification means not putting everything in one place, so one bad result hurts less. Risk and expected return usually go together, so a choice that promises very high returns usually carries high risk. This page is education, not advice about what to buy.

Your plan

1. See compoundingChange only the number of years in a calculator and watch the result.
2. Understand riskRead why higher possible returns come with higher possible losses.
3. Practice safelyUse a simulated market before using real money.

Try it with our free tool: Compound interest calculator.

Handpicked resources

• SEC Investor.gov Youth Resources

  Age-appropriate introductions to saving, investing and risk.

  FreeGuide & reference

• SEC Compound Interest Calculator

  Model monthly deposits, investment time, interest and compounding frequency.

  FreeCalculator

• SEC Why Save and Invest

  How personal goals influence saving and investing choices.

  FreeCourse & lessons

• SMG InvestQuest

  Short 3-year market scenario activity with levels; no registration required.

  FreeGame & simulation

  Select InvestQuest on publisher landing page.

• SIFMA Stock Market Game

  Manage a hypothetical $100,000 portfolio with classroom investing materials.

  Free / low-costGame & simulationAccount or sign-up needed

  State program registration and pricing may vary.

• EconEdLink Personal Finance Videos

  Short quizzes and videos about compounding, investing and credit.

  FreeVideo & audio

Knowledge check

Educational practice, not financial, tax or legal advice.