As a parent, you want the best for your child—whether it’s their education, their career, or their financial future. Imagine them at 30 years old, waking up in their dream home, financially secure, and free to pursue what truly excites them. The key to that future? It starts now, with the right financial habits.
Many adults regret not learning about investing sooner. But your teen doesn’t have to make the same mistake. By introducing them to investing early, you can set them on a path toward financial independence—one that will serve them for the rest of their lives.
Why Teens Need to Learn About Money Now
Have you ever heard an adult say, “I wish I had started saving earlier”? It’s a common regret. The problem is that most people don’t learn about investing until they’re already deep into their careers—sometimes even later. By then, they’ve missed out on years of potential growth.
Here’s the issue: money loses value over time if you just let it sit in a regular savings account. This happens because of inflation, which is when prices of things like food, gas, and rent go up over time. If your money isn’t growing faster than inflation, you’re actually losing buying power every year (Investopedia explains inflation).
Teach Teens to Invest Early
The way to beat inflation and build real wealth is to invest. And the great news? Your teen has the biggest advantage of all: time. The earlier they start, the longer their money has to grow through compound interest.
The problem is that money loses value over time due to inflation. If your teen simply saves money in a traditional bank account, they’re actually losing purchasing power year after year. (Learn more about compound interest). Instead of just saving, they need to learn how to grow their money.
How to Introduce Your Teen to Investing
Teaching your teen about investing doesn’t have to be complicated. Here’s how you can break it down into simple, actionable steps:
1. Start with What They Understand
Investing can seem overwhelming at first, but it helps to start with something familiar. Your teen probably already knows and uses brands like Apple, Nike, and Amazon. These companies are publicly traded, meaning people can invest in them through stocks.
For example, have you ever noticed how Apple, Nike, and Amazon keep growing? These companies are part of the stock market, and you can actually own a piece of them through stocks. But instead of trying to pick just one stock (which can be risky), you can invest in an index fund, which spreads your money across many companies at once. One of the most popular ones is the S&P 500, which includes the 500 biggest companies in the U.S. (See how S&P 500 funds work).
Problem: Picking individual stocks is risky
Many people try to “beat the market” by picking individual stocks. But the truth is, even experts struggle to do this consistently. Instead of taking on too much risk, you can invest in a broad index fund, which gives you steady, long-term growth.
Solution: Teach your teen to invest in index funds and ETFs
Instead of trying to predict which stock will skyrocket, invest in an index fund like the S&P 500. This way, your money grows with the overall market. Over time, the market has always gone up, despite short-term ups and downs (Check historical market performance).
2. Encourage a Long-Term Mindset
Teens are naturally drawn to instant results. But investing is a long game.
Many people panic when they see the stock market drop and sell their investments at a loss. Others try to time the market, buying and selling frequently. But this approach usually fails.
The stock market will go up and down, but history shows that it always recovers and grows over time. Instead of trying to predict short-term movements, think long-term. The best investors stay invested for decades, not weeks (See Warren Morgan Stanly’s long-term investing perspective).
3. Show Them They Don’t Need a Lot of Money to Start
One of the biggest misconceptions about investing is that you need a lot of money to get started. That’s simply not true.
Problem: Many teens think they need thousands of dollars to invest
If you believe investing is only for wealthy people, you might put it off for years. But waiting too long can cost you valuable time.
Solution: Start with whatever you can afford
Even if you only have $25 a month to invest, that’s enough to begin. Platforms like Mostt make it even easier for teens to start small with personalized investment plans that grow over time, all while providing guidance and educational tools to help them develop smart money habits early.
How to Get Your Teen Started Today
Helping your teen take their first steps into investing is easier than you might think. Here’s a simple action plan:
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Open a brokerage or custodial account – Find an app or a beginner-friendly interface like Mostt.
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Start with an index fund or ETF – These provide steady, long-term growth with lower risk.
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Set up small, regular contributions – Even $25 a month can build good investing habits.
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Encourage financial education – Read books, watch videos, and discuss money management as a family.
The Bottom Line
Investing isn’t just about making money—it’s about creating freedom and opportunity. When your teen learns to invest early, they gain the power to make smarter financial decisions for life.
Most people don’t start investing until it’s too late. But you can change that for your child. By guiding them now, you’re giving them an incredible head start toward a financially secure future. Get started today.