Sigma Wealth Plan

In this article, we'll break down how to make $100 a month. Sound super hard? Nah — a true Sigma just has to be consistent. While everyone else is wasting time, you're stacking cash. Here are a few ways to earn $100 a month.

Tutoring

For people who like academics, this is a great way to make some money. You can tutor kids younger than you, such as your friends' siblings or people you've known for a while. Charge around $25 to $30 if you're doing it once a week.

It can be tough to start your own tutoring service, so here are a few places to make some cash (high schoolers only):

• Mathnasium — Mathnasium instructor salaries in the U.S. are generally around $25.08 an hour (pay varies by city).
• Kumon — Kumon tutors are generally paid around $26.82 an hour (pay varies by city).

Yard Work

Yard work is a great way to make $100 a month, since you can do it for friends, family, or neighbors. This could include picking up dog waste, pulling weeds, sweeping the concrete area, and watering the backyard plants. Typically, charge $10 per visit if you're going twice a week, and $25 if you're going once a week.

Just make sure you set a $25-per-week mark, or you may not reach your revenue goal. Also, be fair to yourself and the customer when setting visits, time spent, and price.

Photography

Here's a good skill-building way to earn income. Offer photography mini-sessions for birthdays, teen photos, and more. You can do this for friends, family, neighbors, or people in your neighborhood who sign up. Typically, you can charge $30 to $100 per session, depending on the scale of the shoot.

In this article, we'll discuss how to save the $100 you earned from the last article. A Sigma doesn't just earn money — a Sigma has a plan. Let's make yours.

What Is a UGMA/UTMA?

A UGMA/UTMA is a custodial account — a way to save on the child's behalf or give them financial gifts. UGMA stands for the Uniform Gifts to Minors Act, and UTMA stands for the Uniform Transfers to Minors Act.

In a UGMA account, the child is the legal owner, but a guardian or custodian manages it until the child reaches the age of majority. The custodian makes the investment decisions until the child reaches the transfer age. When a guardian puts money into this account, it's irrevocable — they cannot take it back.

The account is under the child's assessment and is taxable. The Kiddie Tax Rule is a tax rule under which some earnings are taxed at the child's lower rate, but once earnings exceed a certain amount, they are taxed at the parents' rate.

UGMA vs. UTMA

Where to Open a UGMA/UTMA

Many people use a custodial brokerage account (UTMA/UGMA) to invest in funds and ETFs — not just a regular bank account. A bank account can be a holding place, but investing usually happens in the brokerage custodial account.

Some popular banks that offer UGMA/UTMA accounts include Chase Bank, Charles Schwab, Fidelity Investments, and Bank of America/Merrill Edge.

Some popular credit unions that offer UGMA/UTMA accounts include Alliant Credit Union, State Farm Federal Credit Union, Northrop Grumman Federal Credit Union, and Advia Credit Union.

There are many other banks and credit unions that offer UTMA/UGMA accounts, so do your own research too. Also, look into the interest rates and other details before, during, and after opening an account.

Step-by-Step Guide

Here's a step-by-step guide to putting savings into a UTMA or UGMA. This account is set up by the child's guardian.

1. Find a bank or brokerage that offers a UTMA or UGMA account.
2. Open the account under the child's name. You'll need the child's Social Security Number plus basic information.
3. Set up regular transfers. If the child is getting paid into a checking account, transfer the savings amount monthly into the UTMA or UGMA. If the child is being paid in cash, deposit it into a bank account first, then transfer it to the custodial account.

Now that your money is in a UTMA/UGMA account, it's time for the real Sigma move — investing. This is where your money starts working for you.

Always check with your guardians and ask for help from them. This article is here to give you an idea and teach the basic fundamentals of investing — it is not financial advice. But knowledge is power, and a Sigma stays informed.

Why Index Funds?

From the central teachings of the book A Random Walk Down Wall Street, it's nearly impossible to consistently "beat the market" through timing or picking individual stocks. Instead, the smart move is to buy-and-hold diversified, low-cost index funds.

An index fund is a type of mutual fund or ETF that holds all the companies in a single index (like the S&P 500). Buying index funds is like buying many companies in a group, which effectively reduces investment risk by a significant amount. If one company has losses, the other companies help balance things out.

Diversify Your Portfolio

One important principle of investing is to diversify — spread your money across different types of investments. In other words, it's good to diversify your asset allocation. Here's a general risk guide:

• Bonds — Low risk, low reward
• Stocks — Medium to high risk, medium to high reward (depends on the stock)
• Crypto — High risk, high reward

When I say stocks are "medium to high risk," I'm definitely not saying that stocks are gambling or that they're not something you should invest in. I'm saying it's a strategic way to earn profit — but it comes with risk.

What Are Moats?

Investing in popular companies isn't bad, but there's a useful mindset to know about. Pick a company that has dominated its field. This dominant quality — like branding — is an example of what's called a moat. Moats are what help companies stay ahead of competitors in their field.

For example, most people prefer Coca-Cola over Pepsi, right? Statistically, however, people preferred Pepsi in blind taste tests back in 1975. So why does Coke dominate? Branding. Coke has been around for nearly 140 years. That brand trust is its moat.

A moat can help a company, but it doesn't guarantee the stock is a good buy at today's price. Always do your own research.

Government-Issued Bonds

Government-issued bonds are very low risk, since it's unlikely the government will fail to pay you back. However, that also means the reward or profit is relatively low. Bonds are loans (debt) that investors make to a government or company. The issuer pays interest and pays back the principal at maturity. Note that bonds aren't only government-issued — there are also corporate and municipal bonds.

The NYSE Bonds and the Nasdaq Bond Exchange are places where you can trade bonds. The U.S. bond markets are typically open Monday through Friday, from 8:00 A.M. to 5:00 P.M. ET. For beginners, the easiest way to invest in bonds is through bond funds or ETFs.

Cryptocurrency

Crypto is a very risky investment option for a few reasons:

1. Extreme volatility. Prices can change drastically and unpredictably. You could lose a big portion — or even all — of your invested capital.
2. Decentralization. Crypto is decentralized, meaning there's no single government or authority supervising it. While this can be a benefit, it also means less protection if something goes wrong.
3. Hacks, privacy issues, and less control. Hacking is common on centralized crypto exchanges because they hold valuable digital assets. Central crypto exchanges also have strict Know Your Customer (KYC) requirements that can undermine anonymity.

There are three types of crypto wallets: hardware (physical devices like USB drives — very safe), software (virtual wallets on your computer — convenient but less secure), and paper (printed QR codes — must be stored safely). Crypto exchanges are active 24/7.

Types of Stocks by Risk Level

There are many different types of stock markets, so you can't just say "stocks are this level of risk." Here's a breakdown:

Sigma Wealth Plan started as a National Junior Honor Society (NJHS) project by Raghav at Woodcreek Junior High in Katy, TX. What began as a school project quickly turned into something bigger — a mission to help young people take control of their financial future.

Raghav noticed that most kids his age had no idea how money actually worked — how to earn it, save it smartly, or make it grow through investing. Schools teach a lot of things, but real-world financial literacy often isn't one of them. So he decided to do something about it.

The Mission

Sigma Wealth Plan exists to be the go-to resource for middle schoolers, high schoolers, college students, and teenagers who want to learn about money — without the boring jargon or confusing Wall Street talk. Every article is written to be clear, practical, and straight to the point.

The goal is simple: give young people the knowledge they need to start building wealth early. Whether you're trying to make your first $100, figure out what a UGMA account is, or understand the difference between an index fund and a penny stock — this site has you covered.

Why "Sigma"?

A Sigma walks their own path. They don't wait for someone to hand them a playbook — they build their own. That's exactly what this site is about. While most kids aren't thinking about investing or financial independence, Sigmas are already ten steps ahead, quietly stacking and growing their wealth.

Editorial Standards

Every article on Sigma Wealth Plan cites real sources — from government websites like IRS.gov and Investor.gov to trusted financial organizations like FINRA and Vanguard. We include disclaimers on every page because we take accuracy and responsibility seriously. If we get something wrong, we fix it.

This site is for educational purposes only and nothing here should be taken as financial advice. Always consult a qualified professional for decisions about your money.