Invest what you save, wisely.
There are tons of different investment vehicles available to you. But as a teenager, mutual funds are a great and practical way to invest and grow your assets.

Mutual Funds
Mutual funds are really an investment of other investments. When you own a mutual fund, you actually own the securities (stocks, bonds, cash) within the mutual. With mutual funds, you are pooling your money with other investors. Plus, you have all elected to have someone else--the mutual fund's portfolio manager, a professional--manage your money and make decisions about the securities you own. (These holdings, or what you own, change as the fund manager sees fit.)

What's great about mutual funds is that for a small amount of money, typically as little as $50, you are able to invest in multiple companies at once. You can purchase mutual funds directly from the mutual fund company, known as a "mutual fund family," for example Vanguard or Fidelity, or by opening a brokerage account at a brokerage firm, like TD Waterhouse, Charles Schwab or Merrill Lynch.

And here's some mutual fund trivia for when you're on Jeopardy: there are approximately 14,000 mutual funds...there are only approximately 7,000 stocks.

Stocks
If you are gung-ho for individual stocks, you should buy stocks of the companies whose products and services you use or purchase. One of the best ways to invest in individual stocks is through an investment club; you may want to consider forming one with your friends.

For more information on mutual funds, stocks and tools on how to form an investment club, go to betterinvesting.org.