Abdullah Ahmed, a 15-year-old from Scarsdale, N.Y., has started an investing club at his school that now boasts 80 members.
Meanwhile, 13-year-old Mizu Pope is trading with the enthusiasm of investors decades her senior, using money earned by doing chores around her neighborhood to fund her investments, with her parents’ oversight, on the teen-focused investing app Greenlight.
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These two teens appear in a Wall Street Journal story illustrating the growing trend of younger Gen Z investors who are already interested in the stock market and saving for retirement. In fact, the Journal reports that trades directed by minors on the Greenlight app were up 77% compared to two years earlier, a trend that Jennifer Seitz, the company’s director of education, attributes to the financial literacy of this age group. She noted that a growing share of children on the platform are setting up recurring transfers to their investment accounts, a sign that they may be focused on longer-term goals (1).
A majority of American high schools have now added financial literacy programs to their curricula (2). Research from one consulting firm even suggests that taking even a single course in high school could mean an eventual economic benefit of roughly $100,000 per student (3).
So how can you get your children interested in investing safely, and kick-start their financial education, long before they even begin their careers? Here are some tips on helping your budding financial whizzes start young and stay in the game.
Today’s teen investors
The way the very youngest members of Generation Z (born between 1997 and 2012) are getting into investing is striking for two reasons: First, they’re not (just) chasing short-term wins and meme stocks, instead going for long-term holdings and years-long growth cycles. Second, they’re thinking ahead — far ahead.
While some teens interviewed by the Wall Street Journal said they’re saving for college or their first apartment, one teacher at Winooski High School in Vermont noted that retiring early is among the top topics for her students. It seems these kids know that investing early and riding the waves through ups and downs in the market is the way to go.
This trend could be tied to the overall rise in interest in stock market investing in the U.S. CNN reported in September that Americans have more money invested in the stock market than ever before (4), and participation in the market has rebounded after the pandemic slump, with 62% of Americans owning some stocks, whether those are individual stocks, mutual funds, or stocks invested in a self-directed retirement account (5).
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The benefits of investing young
Even if the market takes another downturn, these savvy teens will still have a clear advantage over older investors: time. They are taking advantage of the magic of compound interest, keeping their investment accounts funded and staying focused on the long-term goals they’re saving for.
According to research from the World Economic Forum, 30% of 18- to 27-year-olds (Gen Zers) across the globe have started investing in early adulthood — by comparison, 9% of their parents in Generation X, and only 6% of baby boomers could say the same (6). This could help these young adults hit their retirement goals earlier and build wealth in spite of economic headwinds like a wobbly jobs market, housing crisis and student loan debt.
Teaching your children how to invest
While it may be tempting for teens to just launch into investing in the hopes of growing their allowance or birthday money, it’s critical that parents exercise oversight and teach their children about the risks involved in investments.
Some experts have noted that loosening laws and the rise of investing apps and interest in investing has brought along with it to a rise in the popularity of risky financial behaviours like cryptocurrency trading, high-risk day trading, and online sports gambling (7).
Moreover, fraud, particularly crypto fraud, is on the rise. According to data from the FBI, investors were scammed out of $9.3 billion by crypto fraudsters in 2024, a 66% increase compared to 2023 (8).Therefore, lessons about how to grow wealth should also come with a heavy dose of caution.
Here are some financial literacy lessons it’s worth discussing with your teen:
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Talk to your kids about your own investment choices and why you make them. Talk about riskier and safer investments, and the importance of doing good research before putting money into any type of investment.
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Set a limit on how much of their money teens can invest, and talk about safe savings and investing goals, like saving 15% of your income.
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If your teen’s investments don’t pan out, discuss why that was the case and how to cope with the setback and move forward.
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Talk about your own financial challenges in an age-appropriate way, and share lessons you learned the hard way when you were younger.
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When tax season rolls around, involve your teen in the process and explain how your investments are taxed (9).
On the flip side, if you’re a young investor looking to get into the stock market, it’s important to remember that, first of all, you’ll need to do it with a parent or guardian. You need to be at least 18 to open an investment account. Here are some other hard-won lessons.
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Investments come with fees: Whether you’re buying stocks, mutual funds or investing in an exchange-traded fund, be sure you understand the fund management fee and how that will impact your returns.
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Read up on 401(k)s and your employer matching program, if you have a job. Take advantage of the free money offered through these programs to boost your retirement savings.
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Consider setting up a Roth IRA. While you’re young, you’ll likely pay less taxes on this investment because you’re in a lower tax bracket, and the money will be tax-free in your retirement.
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Boring is best: Chasing big returns is often a recipe for disappointment. Go for safe index funds and mutual funds, and keep your goals long-term rather than hoping for short term wins (10).
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Wall Street Journal (1); Council for Economic Education (2); Tyton Partners (3); CNN (4); Gallup (5); World Economic Forum (6); Journal of Primary Care & Community Health. (7); FBI (8); Prudential (9); New York Times (10)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.