Investment strategy for 19 yo

[Chris Adams]

My 19 year old nephew has moved in with us and I am trying to teach him about investing. To start with we are trying to teach him investment discipline, putting away 10% of his weekly earning into some kind of savings plan before he spends any of the earnings.

I have showed him how REI works, and we did a few examples of how purchasing a duplex as his 1st home can lower his cost of living dramatically.

I have also showed him how to create a monthly budget and track his expenses in order to help him understand where his money is going.

But in the short term what kind of investments should I be showing him to help build his nest egg towards the purchase of his first property.

[Bill Gulley]

The investments available to him will have much to do with his disposable income! Living with you, I'd say his savings should be more to 40 or 50%, he would otherwise be paying 30% on housing, 10% on related housing expenses, does he contribute to food? Living with you is an opportunity for him to save what he'd be spending being on his own.

In fact, he needs to pay his bills, if any like car and insurance and set a lower amount, 200/300 bucks for blow money and save the rest. If he makes a grand he should be saving 500 bucks, IMO.

Investment wise, CD and money market is low but safe to build up funds, then move on to investing, first comes savings. :)