What Teens Think About Investing and Why It Matters

When I was a teen, one of the top things on my mind was making money. Of course I wanted money to hang out with my friends, but I also wanted money for bigger things like a car and college. How was I going to pay for it? I could ask my parents, but Mom and Dad were not a never-ending ATM machine. A light switch turned on: I needed a way to earn money. It's the same for teens today. They want to make more money. That's where investing can come in. Investing is about the potential for you to make money on money you have earned and according to the Schwab Teen Investing survey, teens get this.

Seventy percent of teens say they are very or extremely interested in investing, according to the Schwab Teen Investing survey.¹ Why? Their top motivation is to get more money (45%). But they also see it as both a financial and educational opportunity, with 34% wanting to invest to pay for college and 33% wanting to learn how money and investments work.

When asked what areas they are most interested in investing in, teens say artificial intelligence (34%), video games and gaming (28%), social media (26%), cryptocurrency and blockchain (26%), and food and drink (22%). Nineteen percent of teens say they want to invest in electric vehicles, and 18% say makeup and beauty.

Teens today are surrounded by money talk. They're scrolling past financial videos on YouTube and TikTok, and many investing apps are built specifically to catch their eye. Features like fractional shares make it easier to start investing with just a few dollars—and that accessibility can grab their attention.

But this digital-first world comes with trade-offs. While teens are comfortable online, they're also exposed to plenty of questionable advice and high-risk ideas, from cryptocurrency hype and sports betting to "get-rich-quick" strategies. Without context or education, it's easy to confuse popularity with credibility.

That's why trusted financial education matters more than ever. When teens understand the fundamentals—how investing works, what risk really means, and how to think long term—they're far better equipped to make smart decisions. The goal isn't to turn them into market experts overnight, but to give them a strong foundation and a healthy mindset. The following core concepts can help teen investors start off on the right foot.

Whether you're already an investor yourself or you know a young person who could use a little guidance, having the right conversations early makes a real difference. Investing doesn't have to be complicated—but it does need context. These six core concepts are a great place to start.

Saving builds the foundation. Investing can help build wealth over time. It's important to understand when to save for short-term goals and when to invest for potential long-term growth. Knowing the difference helps you make smart choices as your goals evolve.

Risk is a natural part of investing, and diversification can be one of the best ways to help manage it. It's a simple concept: Don't put all your eggs in one basket. In investing, you can spread your risk by adding different types of investments to your portfolio that aren't likely to go up or down at the same time. In practice, this means owning a variety of stocks and/or bonds, each with different characteristics.

Starting to save and invest early is important because the amount of time you're invested can be a key factor in working toward your goals… Starting early, even with small amounts, can make a significant difference. For example, invest $50 a month for 10 years at a 5% return, reinvesting all earned interest, and you'd have $7,750. Invest $50 a month for 20 years at a 5% return, reinvesting all earned interest, and you'd have over $20,000.²

Understanding the basics of stocks, ETFs, mutual funds, and bonds is important to making good investment decisions.

Investing is a goal-based journey. It's not about instant gratification. Regular contributions and a disciplined approach towards a goal and a timeframe can often lead to better outcomes than chasing trends.

Learn to separate credible sources from the hype. Look for data based, educational content over influencer opinions or anonymous forums.

The teen years can be a great time to get kids involved with investing. Teens are taking in a lot of information and they're actively learning. In my experience, if you can get a teen talking about money and investing, it's a sign they're engaged. The next step is to take them from a conversation to actually doing it. And there are lots of ways to do that.

• Real or simulated investing: There are many ways for kids to experience investing, from apps with simulated investing accounts to actual teen accounts or traditional custodial accounts.

  A teen account can help take investing from a concept to an account balance that your teen can see go up and down. Your teen can learn about different asset classes, watch their investments go up and down, and learn about compounding and risk management with real numbers.

• Quarterly investing check-ins: Once you get your teens involved in investing, keep the conversation going. One way is to establish quarterly investing check-ins to discuss goals, risk tolerance, review choices, and look at gains and losses.

  It's a great way to reinforce a goal-based mindset. The idea of delayed gratification may be the hardest challenge for young people. I'm all about enjoying the present. But you also need to think about five, 10, or even 30 years from now, based on different goals. If you tie investing to a longer-term goal now, it creates a mind shift that teens can carry into adulthood.

• Resources to support teen investors: Point teens to trusted, credible resources. Share articles, videos, and online tools.

Teaching teens isn't just about the tools, it's about educating and sharing experiences that help keep teens engaged. Be intentional, and make time to have a conversation. Talk about an article, or something you heard on social media. Maybe there's a game or quiz online you can take together. Open up an app and make money decisions digital, interactive, and collaborative.

Plus, let teens in on your own investing experiences. Is there a stock or ETF you're particularly interested in? Share your research. Then ask about their investing ideas and encourage them to research on their own.

Finally, find ways to celebrate saving and investing achievements like meeting a savings goal or making a first investment. Sharing experiences and celebrating milestones are effective ways to keep the conversation—and your teen's interest—going.

Very early in my career, when I was a financial consultant, I mentored a young man who was a junior in high school. He shadowed me for a day in our Schwab branch and seven years later, he reached out to me. He'd gone on to major in accounting, started a new job, and had some financial questions about his 401(k).

He told me that the time spent in the branch had stuck with him. He saw what we do, and he decided he wanted to be like the clients he saw that day. That experience in the office was a lasting motivation, and it made a difference in his life. What better example of the power of learning about investing early?