How to Invest Your First $100

Introduction

Many people think you need thousands of dollars to start investing. The truth is, you can begin with as little as $100. Starting small lets you learn how investing works and gives your money time to grow.

Step 1: Build a Small Safety Net

Before investing, make sure you have some savings for emergencies. Investing is best for money you will not need for several years. If you might need the $100 soon, keep it in a savings account instead.

Step 2: Open the Right Account

Teens can open a custodial brokerage account with a parent's help. If you have earned income from a job, a custodial Roth IRA is another great option because your money can grow tax-free. Many brokers have no minimums and no commissions, so $100 is plenty to start.

Step 3: Keep It Simple

With $100, a low-cost index fund or ETF is often the smartest choice. An S&P 500 fund or total stock market fund spreads your money across hundreds of companies. Many brokers let you buy fractional shares, so you can invest your full $100 even if one share costs more. Then add a little more each month if you can.

Conclusion

Your first $100 investment is the start of a powerful habit. Begin small, stay consistent, and watch how your money grows over time!