I am 14 and just found a skin color lump on the bottom of my penis near the scrotum. I have never had intercourse so know it isn't an STD and have never had oral or done anything with that. I do masturbate only about 3 times a week. I am a little scared of what this is and would really like to get some suggestions or ideas.

It also hurts when I squeeze it. I really don't know what to do

It is very common to get lumps and bumps of all shapes and sizes in all damp, closed areas of the body. Some go away, some don't. The common ones associated with contact from other people are usually herpes (herpes simplex virus 2, or HSV2) and genital warts, or papillomas, also caused by a virus. The herpes virus that causes bumps on the face and is not associated with sex (usually around the mouth, HSV1) can also be present in the genital area and vice versa, so it's not absolute.
You can research those online for all sorts of information, and of course if you wish, see a doctor. Without any sexual contact, you might be one of millions with just skin reactions to moisture and clothing. Many of us find such bumps to happen more as we get older.