Why is it important to invest as a teen? Are teenagers too young to step into stocks? How can a teen SAFELY invest at such an age?
Teenage is one of the critical points in one’s life. During the teenage years, lots of exciting things happen in life like getting your first job and earning money; this is the perfect time to learn about the importance of saving, investing, and the best ways to do so. If teens are not aware of benefits of saving and investing, their spending might lead them down the wrong path.
As teenagers gradate high school and start applying to colleges, one of the obstacles in this journey might be the tuition of colleges. Even though colleges offer financial aid, not everyone who needs it fits into the requirements for aid. It is very unfair for a student to not be able to attend the college he/she wants due to their financial condition. Let’s say the student manages to attend the college by taking a loan. This creates problems for the future because these students spend the next 10-12 years after college, paying their student debt. These situations can simply be avoided if a teen had invested and saved money leading up to or in college.
Many of the parents think that teaching their children about finances has to be complicated, but Massey, Professor of Sociology and Public affairs at Princeton, says “if parents take the time to help teens understand the difference between wants and needs, they’ll learn to save, budget, and invest”. Teens can start their journey by exploring Stock Market Stimulators, and then shift into the real stock market. They can also save larger portions of their income, high yield savings, and cut down on unnecessary spending. Small things like these add up and make a big difference, which benefits teens in the long run and helps them have a financially secured future.
Mission Saksham 