On a bright Saturday morning, Liam and his friends AJ, Simay, and Onyx set up their craft booth at Civic Square. They sold colorful friendship bracelets, shiny keychains, and painted stones. As they counted their earnings, Liam felt proud. “We made thirty dollars!” he exclaimed.
Simay smiled, “That’s great, Liam! What are you going to do with all that money?”
Liam scratched his head. “I want to make it grow. I heard about something called investing. But I have no idea how it works.”
“Investing? What’s that?” asked AJ, curious.
Liam explained, “It’s when you put your money into something with the hope it will earn more money.”
Just then, they saw a colorful poster fluttering in the wind. It announced a special Junior Investors Event next weekend at the community center! “Look!” shouted Onyx, pointing at the poster. “We can invest our money in pretend businesses!”
Liam's eyes sparkled with interest. “Wow! Let’s go learn more!”
The following Saturday, the friends headed to the Junior Investors Event. It was a busy place filled with kids eagerly pitching their ideas. Liam saw his friends showcasing their own projects. Onyx had designed a Traveling Cookie Cart that would sell delicious cookies around the neighborhood. Simay showed off her Pet Grooming Van, where she promised to make pets look fabulous.
As he listened to their presentations, Liam felt excitement and confusion. He stood by the cookie cart and watched kids talk to Onyx. “I’m not sure which one to choose,” Liam said, scratching his head again.
Suddenly, a mentor named Mrs. Thompson approached them. “Hi there! Are you thinking about investing?” she asked.
“Yes!” replied Liam. “But I don’t know how to decide.”
Mrs. Thompson smiled. “Investment can be fun! You can earn money, but there’s also a risk of losing it. It's important to think about both the risks and rewards."
“What do you mean?” asked AJ, tilting his head.
“It’s simple! If you invest $10 in Onyx’s cookie cart and it sells cookies well, you could earn $15 back! But if nobody buys cookies, you might only get $5 back—or even lose that $10,” Mrs. Thompson said.
Liam thought about what Mrs. Thompson said. He wanted to make a smart choice. “Okay, guys, how should I choose?” he asked his friends.
Simay thought for a moment. “We should list the pros and cons for both businesses!”
Liam opened his notebook. Together, they made two columns.
For Onyx’s cookie cart, they wrote:
Pros:
Cons:
Next, they considered Simay’s pet grooming van.
Pros:
Cons:
After listing the pros and cons, Liam felt a little more confident. “Hmm, what if I split my investment?” he suggested. “I could invest $5 in the cookie cart and $5 in the pet grooming van!”
“Yes!” said AJ, “That way, you spread out the risk!”
“But what if I lose the money?” asked Liam, worried.
Simay reassured him, “That’s part of investing—it’s okay to take a little risk! You could learn from it!”
Liam thought about Mrs. Thompson’s words. He felt ready to make his decision. With his friends by his side, he walked over to them and said, “I want to invest in both projects. I’ll put in $5 for Onyx’s cookie cart and $5 for Simay’s pet grooming van!”
Onyx and Simay were thrilled! “Thank you, Liam!” they cheered. Mrs. Thompson smiled as she handed Liam a colorful certificate. “You’ve made a thoughtful investment choice, Liam. Remember, it’s all part of learning!”
As the weeks passed, Liam’s $10 investment turned out to be a fantastic adventure. Onyx’s cookies were a big hit at the school bake sale, and Simay’s pet grooming business took off after they made flyers and shared them around the neighborhood.
In the end, Liam didn’t just earn money—he learned the excitement of investing and the importance of considering risks and rewards. Whether he made money or not, he had gained valuable knowledge about being a smart investor.
“Next time, I’ll invest even more!” Liam said with a smile, dreaming of new ideas for the future.
And who knows? Perhaps one day, with his friends by his side, Liam would start his own business!
The End