We all save money to buy something that we really want, but though we keep on putting aside a little every week, the money is stagnant. This is where investment comes in. It is crucial to know the difference between investments and savings. Money which is saved up in a bank or piggy bank is dormant. But something which you want to buy at 10 today, will soon become a little more over time due to a process called inflation. Therefore, you need to invest, so you can grow your money alongside inflation. Financial jargon, such as investments, risk-diversification, portfolio, inflation, etc. does seem exceedingly daunting at first, but really, it is surprisingly simple. What is investment? There are many different types of investments like financial, time investments, etc. In this article I will only be focusing on financial investments. Financial investment is the process of putting away your money now so that you can grow that money and enjoy it in the future. How do you start investing? First, you have to open a trading/depository account with a bank. You will also need some money to start with. This could be some money given/gifted to you, a little bit of your pocket money set aside every week, etc. Your bank will give you a variety of investment options to buy. Then, depending on your capital and your risk appetite, you can choose high-risk or low-risk investments. High-risk investments are investments which might give you very high returns, but can also be associated with high loss. The most common type of high-risk investments are shares (investing in individual companies to grow your money). Some types of low-risk investments include bonds, fixed deposits, etc. These will not give you much return, but the return they promise is guaranteed. It is important to understand the concept of Risk-Diversification. This means spreading out your risk. The famous quote: ‘Don’t put all of your eggs in one basket’ encompasses the concept of ‘Risk Diversification’ aptly. If one investment doesn’t turn out well, you have many more investments to rely on. For example, if you have 100, and you invest it all in one company, if that company doesn’t do well, all your money is gone. On the other hand, if you invest 20 in 5 companies, if one of them doesn’t do well, you still have 80 to rely on. If you do not have much time or expertise to analyse the company’s sector, profits, losses, potential, etc, then a good way to diversify your risk is to invest in funds (ETFs, mutual funds, etc). These are organisations which have experts who analyse every little detail about a company and invest in them for you so that you have the best return on your investment as possible. One fund will invest in many companies to diversify their risk. As you can see, investing opens up a whole new opportunity to grow your money, and all it takes is a bit of money to start with, convincing your parents to open a trading account, and some time.
Stone Soup Magazine for young readers, writers, and artists
When You Trap A Tiger, Reviewed by Pragnya, 12
When you Trap A Tiger by Tae Keller is a story of family, relationships and the magic in everyday life in which, Lily, the Korean-American main character, discovers a secret about her family’s heritage. It all starts when she, along with her sister Sam and her mother Joan, go to visit her halmoni (grandmother in Korean) in Sunview. But when she comes across a tiger that looks like it is straight from one of her Korean folktales, something inside her starts to wonder how normal her family heritage actually is. Unfortunately for Lily, trying to solve the mystery of a tiger straight from mythology isn’t easy, especially when the harshness of reality starts to show itself. Naturally introverted, Lily finds it difficult to make friends and fit in amongst people until she meets Ricky, a lighthearted rich kid from the other side of town who has more to him than his humorous outside. Together, the two of them set plans to trap the tiger and save her halmoni. But what if the tiger isn’t the villain of the story? What if there’s more to the tale than what Lily understands? Will she be able to conquer her fears and figure out what’s going on before it is too late? One of my favorite elements of the book was its character development. I loved all the characters with their quirks and emotions and vivid personalities. I also really liked some of the character arcs and the extremely meaningful lessons that came out of it. The best kind of books are those books which make you feel something. When I first started reading Tae Keller’s Newbery Winning Novel, I didn’t have too many expectations. I entered this book expecting adventure, mythology and an engaging character dynamic. But when I finished the book, I was left in a whirl. I felt as though I’d been following the thread of Lily’s adventures and emotions and thoughts until the very end of the story and then I was left with all the pieces left behind that made me feel a lot of this and helped me form an opinion on the novel. When You Trap a Tiger is filled with all sorts of moments, both heartbreaking and heart racing, but this spellbinding novel will keep you hooked until the very end. When You Trap a Tiger by Tae Keller. Random House Books for Young Readers, 2020. Buy the book here and support Stone Soup in the process!
Weekly Creativity #143: Write a Story about Two Characters who have Made a Mistake
Two characters have made a mistake or done something they know is wrong. One wants to tell the truth, and the other wants to lie about it. Tell the story of what happened, and how things turn out.
