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Pay Off High Interest Debts Before You Start Saving - A lot of people feel they should start saving while still paying high interest payments on their debts. This...

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S&P 500

Definition: An index of five hundred major stocks.  This is considered a benchmark for mutual funds because fund managers want to outperform this index.

TeenAnalyst Advice: As mentioned, this is essentially the benchmark for investors and mutual funds to beat.  When someone says they "beat the market," they're usually referring to earning a higher return than the S&P 500.

The S&P 500 is not an equal-weighted index like the Dow Jones Industrial Average.  Instead, it's market cap weighted.  This means that the bigger companies make up more of the index.

 

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