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Ellen Richardson: Building Independent Wealth

By Lori B. Murray

Friends of 17-year-old Ellen Richardson are used to seeing the Northfield Mt. Harmon School, MA student studying at her desk. Rather than history or algebra, though, she might be studying the stock page of The Wall Street Journal. Ellen, from Durham, NH, has owned stock since preschool and has read The Wall Street Journal since the fifth grade - thanks to her grandparents' help and her love of the market's unpredictability.

"I think I like the craziness of it," explains Ellen. "It's fun to play with." But for Ellen, investing in the stock market is anything but a crazy game. She spends lots of time carefully researching companies before making a purchase.

Ellen's first stock market experience took place when her grandmother bought her 100 shares of General Electric (GE), but the real investing began with a partnership between Ellen and her grandfather. "I have a deal with my grandfather where he lends me some money and I am allowed to pick whatever stocks I want. We split whatever profit there is," she explains. "If we lose money, it must be made up before we split any earnings."

Currently, Ellen's portfolio is worth approximately $13,000, not counting the initial GE investment. Ellen owns shares of Ben & Jerry's (ice cream), Coca-Cola (because she likes Coke better than Pepsi), and America Online (AOL). While many of her investment decisions result from newspaper clips sent to her by her grandfather, Ellen chooses companies based on information she reads and what looks good to her.

As for her original GE stock, she now owns more than 500 shares, a result of the company's dividend reinvestment program. Ellen has set these shares aside for long-term savings, keeping another account for spending and college savings. She plans to attend college and major in international business and law, and she's not shy about the fact that entrepreneurship is most likely in her future.

Her advice about investing? "If you don't feel comfortable investing real money, then try playing stock market games on the Internet. But don't wait too long," she says. "The earlier you start investing, the better." And Ellen is a living example of that.

Get Started!

Ellen is a recent graduate of Camp Start-Up, a summer camp sponsored by Independent Means that introduces teenage girls to the world of entrepreneurship and investing. At the camp, Ellen learned how to make a business plan and create her own business. Building equity at an early age - either by starting a business or investing in the stock market - is an important lesson for every teen.

For more information about camps, weekly classes, and study guides that teach financial independence and business basics, visit Independent Means at www.independentmeans.com.

The earlier you start investing, the better-Ellen Richardson