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Here are the highlights.
It went on to elaborate about stocks.
When you buy a stock, you own a tiny part of that company.
If the company does well, the value of your stock might go up.
But if the company doesnt do well, the value might go down.
ChatGPT also explained how bonds are more secure but have a smaller return.
It also explained thevalue of long-term investments.
The idea is that over time, the value of your investments will grow.
But it might take years, so dont expect to get rich overnight.
Then, it emphasized the importance of starting small a lesson even adults could benefit from.
Even if you only have $10, thats a great start, it said.
ChatGPTs Response
The money in a savings account is safe.
With a 4% interest rate, your money will grow, but not super fast.
For $100, youd get about $4 more in one year, ChatGPT said.
Think of it as planting seeds for a money tree.
Its hard to argue with this logic.
Question: How Much Should I Invest?
A good starting point might be 10% to 20% of your monthly income.
This is what Ive been telling my son since last summer when he launched his local business!
ChatGPT on Choosing Stocks
Finally, I asked ChatGPT what stocks my son should invest in.
Do some research with your mom to identify companies you think will grow over the next decade.
These stocks should grow over time, although they are all fairly volatile in the current market.
If you want more stability, it recommended looking into ETFs.
Final Take To Go
ChatGPTs advice for investing like a 12-year-old was on themoney.
Try these prompts maybe your tween or teen will listen to ChatGPT better than they listen to you!
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