Invest Regularly
Explain the benefit of investing a fixed amount at regular intervals — cost averaging — over attempting to time the market with a lump sum investment.
In this lesson
Invest Regularly is part of Starting a Long-Term Investment Plan. This preview shows how long-term-portfolio connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Think about this money choice
Sade invests a fixed amount every month regardless of whether markets are up or down. After two years, her average purchase price is lower than if she had invested all at once.
How it works
Cost averaging is the practice of investing a fixed amount at regular intervals — monthly, for example — regardless of whether markets are up or down. When prices are low, the fixed amount buys more units. When prices are high, it buys fewer. Over time, the average purchase price is typically lower than if the full amount had been invested at a single point in time — because more units were acquired at lower prices.
Apply it to a real decision
Real-life money moment: Sade invests 10000 in local currency/month for 12 months. In months when the unit price is 100 in local currency, she buys 100 units. In months when the price is 50 in local currency, she buys 200 units. At the end of 12 months she has invested 120000 in local currency and holds more units at a lower average price than if she had invested the full 120000 in local currency in month one at 100 in local currency/unit.
Activity preview
Apply the idea
Use the lesson to complete this short practice activity.
Practice adding money to savings
Open Requests and make a deposit request into savings so you can see how saving starts. Parent approval can happen later.
Quiz preview
Investing regularly means:
You invest 10000 in local currency every month regardless of market price. When prices fall you: