How to start investing in the stock market and actually grow your money

Source: ESB Professional/Shutterstock

Many millennials have some mistrust of the stock market, in great part because they came of age during a financial crisis and recession. Yet young people are also aware that they need to be saving money for retirement — with 59% of millennials socking away for retirement before age 25, per a recent study.

Great news, right? The problem is that young people need to not only save up — but also really understand how investing works. After all, there's a big difference between putting money in a bank account earning less than 1% a year and investing it in the stock market. You're taking on less risk in a basic savings or checking account, sure, but you're also less likely to reach long-term financial goals. Indeed, your 20s are exactly the time that you should be most open to riskier investments, as the Wall Street Journal points out.

In the interest of helping you get over your fears, we've devoted the entirety of this week's Payoff podcast to explaining — simply — how to start investing.

First up, hosts Antonia and Chris talk through exactly why they are confused or fearful of investing and stocks, including debunking common misconceptions about what investing even is and how it works.

Then we get some expert help decoding the wide world of investments — like what an "exchange traded fund" or a "robo-advisor" is, exactly — from financial journalist Scott Gamm, who lives in that world every day as a correspondent for The Street and The Street TV

Finally, we launch a new final segment, where we directly respond to listener questions about money and investments. Have a question you want answered in a future episode? Please write to us at PayoffPod@mic.com.

You can subscribe to the Payoff podcast on Apple Podcasts, Google Play, Spotify, Stitcher, iHeart Radio, tunein, RadioPublic or wherever you listen to podcasts. Please rate and review, and stay tuned for new episodes every other Wednesday!

How likely are you to make Mic your go-to news source?

Alan Haburchak

Alan Haburchak is the Director of Studio & Technology at Mic and an Adjunct Professor of Digital Media at the Columbia Journalism School. He also loves overseeing production for Mic's podcasts "The Payoff" and "Hot Mic." Before joining Mic he was a Senior Video Journalist at The New York Times and before that was the Production Manager for Editorial Video at Mashable.

MORE FROM

5 classes you've never heard of — but that can boost your pay in the future

The best classes to take, as more traditional industries face existential crises, and new lucrative fields of study emerge.

Why your health care costs could rise under the Senate GOP bill

How the Senate healthcare bill affects you: It could increase out-of-pocket costs, deductibles and premiums for consumers, and cut people from Medicaid, while lowering plan quality.

Tips that pay off: These 5 bits of career advice will get you a job you actually love

It doesn't take much to go from novice to career genius. These 5 easy steps will snag you your dream job.

7 unconscious mistakes that are ruining your job hunt

Sometimes the best career advice is to get out of your own way — and pay better attention to the unconscious mistakes you're making while communicating.

5 super easy upgrades that will make buyers pay more for your home

Small improvements can make a big impact on potential buyers.

7 tricks to getting richer during summer vacation season

Feeling financial guilt about your summer vacation? Here are secrets to earning or saving hundreds of dollars seamlessly — while still enjoying your leisure time.

5 classes you've never heard of — but that can boost your pay in the future

The best classes to take, as more traditional industries face existential crises, and new lucrative fields of study emerge.

Why your health care costs could rise under the Senate GOP bill

How the Senate healthcare bill affects you: It could increase out-of-pocket costs, deductibles and premiums for consumers, and cut people from Medicaid, while lowering plan quality.

Tips that pay off: These 5 bits of career advice will get you a job you actually love

It doesn't take much to go from novice to career genius. These 5 easy steps will snag you your dream job.

7 unconscious mistakes that are ruining your job hunt

Sometimes the best career advice is to get out of your own way — and pay better attention to the unconscious mistakes you're making while communicating.

5 super easy upgrades that will make buyers pay more for your home

Small improvements can make a big impact on potential buyers.

7 tricks to getting richer during summer vacation season

Feeling financial guilt about your summer vacation? Here are secrets to earning or saving hundreds of dollars seamlessly — while still enjoying your leisure time.