Investing Money 411.

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Author: Cohen, Russell

Investing can help your money grow faster because the rate of return is often higher than anything a bank savings account can offer. For example, a typical savings account may offer you about 2 percent interest on your money. Meanwhile, investing that same money in the stock market may result in your getting 6 to 8 percent interest.

Investing money, however, does have risks. You won't lose the money you put into a savings account â€" as long as you leave it there. But investments in the stock market can lose money depending on how the stock market and the economy are performing. The chances to make money from your investment, though, can be exciting. And if you start long-term investing now as a teenager, you can usually ride out the ups and downs of the stock market and make money over the long haul.

"Say you started investing now and stopped at age 40," says Todd Romer, executive director of the Young Money Education Foundation, "you'd still have nearly triple the amount of money that someone who invests nearly twice as much starting at age 30 would have if he or she continued until age 60."

• INVEST IN A MUTUAL FUND. A mutual fund is a group of separate company stocks, often part of the same industry, which are pooled together to become essentially one stock. Many investors like mutual funds because owning them is less risky than purchasing single stocks. One reason is that if one company in the fund portfolio performs poorly, another business also in the fund may do well at the same time.

To get started with mutual funds, Romer suggests signing up for an online brokerage account, such as Ameritrade or Scottrade, since they are easy to use, don't require lots of money to open, and usually provide helpful research tools to aid in making good investment decisions. If you're under 18, your parents can set up these accounts for you.

Romer says it's important to research the companies you are investing in.

"You don't want fly-by-night companies that won't stay around," he says.

• JOIN AN INVESTMENT CLUB. Investment clubs are groups of people who pool their money together and make decisions collectively to manage one account. Joining the club can be a great way to hone your skills without taking on much risk.

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By Russell Cohen