With the reality of a harsh economy, Gen Zs are learning to make their money work for them.
For years, the best advice was to save in a bank. But with high inflation and low-interest rates, money saved often loses value. That’s why today’s youth are turning to the stock market, mutual funds, and other investment opportunities. This is the difference between saving for the future and building a future.
Stocks & Dividends: The Basics
- Stocks: When you buy a stock (or share), you become a part-owner of a company. As the company grows, the value of your shares can increase.
- Dividends: This is a portion of a company’s profit that is paid out to shareholders. Think of it as a reward for owning a piece of the company. It’s a way to earn money even if you don’t sell your shares.
Did you know there are billions in unclaimed dividends in Nigeria? These are real dividends from shares you or your family might have bought years ago. Here’s how you can find and claim them:
- Contact your stockbroker or a company’s registrar
- Check the Securities and Exchange Commission (SEC) portal, which has a database for all unclaimed dividends.
- Fill out the e-dividend mandate form to get your dividends paid directly into your bank account.
Ready to Start Investing? Tips for Beginners
- Start Small: You don’t need millions. Many platforms let you start with as little as ₦5,000.
- Do Your Research: Don’t just follow trends. Look into a company’s performance before you invest.
- Diversify: Don’t put all your money into a single stock. Spread your investments across different sectors to reduce risk.
- Use Regulated Platforms: Invest through licensed and trusted digital platforms like Bamboo, Cowrywise, and Risevest.
Platforms teaching Financial Literacy
These platforms and apps are making financial education accessible and engaging for a new generation.
- Money Africa
- The Finance Rookie
- Invest Bamboo
- Cowrywise
