By: Gaby S. Dominguez
Welcome to our series called Confident Kids℠!
Our mission is to assist parents and grandparents in helping their children and grandchildren learn how to think about money, i.e., how to save, how to invest, and how to become financially responsible, not only as children but as teenagers, young adults, and eventually as parents. We’re building financially Confident Kids℠ one young investor at a time!
Age Focus: teens & young adults
As the clock strikes midnight and 2025 begins, many of us are scribbling down resolutions with the hope of eating healthier, exercising more, or finally learning to cook something other than ramen. But what about your finances? If you’re under 30, now is the time to build investing habits that can set you up for long-term success.
Think of investing like Taylor Swift’s Eras Tour. There’s a lot of excitement (hello, stock rallies), some heartbreak (yeah, we’re looking at you, tech sector in 2022), and the occasional surprise setlist (like AI stocks in 2023). The goal is to stay in the game long enough to enjoy every hit.
Here’s your 2025 Investing Goal-Setting Checklist – packed with ideas, timelines, and a sprinkle of fun to keep you engaged.
Reset Your Investing Goals
Before diving headfirst into the market like it’s Black Friday at Best Buy, take a moment to reflect. What are your financial goals for 2025 and beyond?
- Short-term goals (1-3 years): Save for a vacation, pay off student loans, or build an emergency fund.
- Mid-term goals (3-5 years): Buy a car, start a business, or save for a down payment on a home.
- Long-term goals (5+ years): Retirement, financial independence, or becoming the next Warren Buffett (or at least hitting FIRE status by 40).
Write these down in your Notes app or go old-school with a journal. The key is clarity – vague goals like “save more money” don’t inspire action.
Max Out That IRA (ASAP!)
If you haven’t contributed to your Roth IRA yet (or traditional IRA), consider this your reminder. For 2025, the contribution limit is $7,000 if you’re under 50.
Why start early? Thanks to compound interest, your dollars work harder the longer they’re invested. It’s like planting an avocado tree – the sooner you plant, the sooner you’ll have guac for life.
Timeline: Try to max out by April 15, 2026 (the deadline for 2025 contributions), but aim to spread contributions across the year.
Pro Tip: Set up auto-contributions. Even $100 a month gets you closer to that $7,000 goal without breaking a sweat.
Diversify (But Make It Fun)
Diversification isn’t just a boring buzzword – it’s your portfolio’s best defense against market volatility. Think of it like building a Spotify playlist. You wouldn’t listen to only Olivia Rodrigo breakup songs (or would you?). Mix it up with tech, energy, healthcare, and maybe some international vibes.
Pop Culture Hack: If you’re into tech, AI, or sustainability, look at ETFs that focus on those sectors. ARK Invest and others are like the Travis Scott of ETFs – sometimes unpredictable but always interesting.
Emergency Fund (Yes, It’s Boring, But Do It)
Imagine if your laptop died tomorrow. Could you replace it without pulling from your investments? If not, it’s time to build (or replenish) your emergency fund.
Goal: Have 3-6 months of living expenses in a high-yield savings account by the end of 2025.
Fun Tip: Name your emergency fund something cheeky like “Break Glass for Beyoncé Tickets.” It adds a layer of humor to something that feels mundane.
Invest in YOU (Skills, Courses, and Side Hustles)
The best investment isn’t always stocks or bonds – it’s you. Upskilling can lead to higher income, making future investments easier and more substantial.
Ideas:
- Take a coding bootcamp.
- Get certified in something relevant to your career.
- Start a side hustle (Etsy shop, content creation, etc.).
Set aside a budget for personal growth in 2025. Even $500 towards learning new skills can pay off big.
Monitor the Market (But Don’t Obsess)
The S&P 500 had a wild ride in 2024, and 2025 might be no different. Keep an eye on economic trends, but avoid the urge to panic-sell during every dip.
Resolution: Check your portfolio once a quarter. Resist daily peeks unless you’re actively day trading (not recommended for long-term growth).
Set Quarterly Money Dates (With Yourself or a Partner)
Treat your finances like your fitness goals – regular check-ins are crucial. Schedule quarterly money reviews to:
- Track progress toward goals.
- Rebalance your portfolio.
- Adjust for any life changes.
Make it Fun: Order pizza, throw on Netflix, and turn it into a date night. Finance doesn’t have to be dull.
Give Back (Yes, Even a Little)
Investing isn’t just about wealth accumulation. Consider donating to causes you care about. Even 1% of your income can make a difference and inspire positive financial karma.
Plan for Taxes (Don’t Let April Sneak Up On You!)
Taxes are inevitable, but planning can make them less painful.
- Quarterly Tip: Set aside 20-30% of any freelance or side hustle income for taxes.
- Big Win: If you’re investing in taxable accounts, be mindful of capital gains.
Celebrate Wins (Big or Small)
Investing can feel slow, but every milestone deserves celebration. Hit your IRA max? Treat yourself to a fancy coffee or something small but satisfying.
The 2025 Vibe
If the market in 2025 mirrors the chaotic energy of a Marvel multiverse movie, remember: staying calm and consistent is key. Investing is a marathon, not a sprint. Your future self will thank you for starting early, staying the course, and maybe even buying a few shares of that niche ETF that just might take off.
So grab that oat milk latte, set some goals, and make 2025 the year your finances hit their next level!