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Why your teens should start investing today

It’s never too early to start planning for the future, and in today’s economy, there’s no safety net too wide. The financial climate for most Americans is bleak. So bleak, in fact, that a recent survey determined less than 40% of Americans could afford to handle a $1,000 emergency. That’s an alarming statistic, especially for parents looking to set their children up for financial success.

The good news is that financial stability is achievable for your teen — with a little help. One of the best ways to teach your teen financial literacy and thereby set them on a path for financial success is through investing.

teen financial literacy

Teen investing is the new trend in the investment world as parents look to the future for their children. Furthermore, teen investment in cryptocurrency is quickly becoming one of the most popular money moves, making teen crypto holding an open opportunity to participate in something big at the ground level with other smart, forward-thinking young people.

If the frightening stat we shared earlier wasn’t enough to convince you to get your teen involved in investing, we’ve compiled three more reasons for why your teen should start investing today.

Savings for your teen: now and later

One of the biggest hesitancies for investing, especially in crypto, is the potential for loss. While it’s true that valuations do fluctuate, you (and your teen) still have the agency to determine what stocks and coins you feel are worth the risk. But more on that later.

The thing about investing early is that if a loss is incurred, your teen still has plenty of time to recoup and/or recover from it. Investing is a lot less risky when your financial obligations have yet to include a mortgage, a car payment, medical costs, and other adult responsibilities.

Speaking of adult responsibilities, though, how comforting would it be to know that your kid has a solid nest egg waiting for them as they boldly enter that next chapter of life? Their investment today carries the possibility of financial health and wealth in years to come. Heck, it could even be their ticket to early retirement, or at the very least allow them to enjoy retirement without worrying about making ends meet.

To that end, cryptocurrency is an exploding new frontier, bringing with it endless possibilities for investing and community. The earlier your teen gets involved in the crypto market, the greater the chances of their success in it.

Risk-taking and critical thinking

No parent wants their teens to engage in risky behavior, but most would agree that practicing informed risk-taking is a valuable life skill. Assessing the risks that are worth taking and being bold enough to see where they lead under your supervision will provide your under-18 crypto kid with the experience to make tough decisions on their own someday.

Investing well takes experience, but solid critical thinking skills are a big part of that. Before you and your teen take the plunge, you’ll want to spend time evaluating which stocks and coins are compatible with your goals and interests, and then weigh those things against their performance and trajectory.

With your guidance, your teen will make an important informed decision that will go on to teach them much more.

Financial literacy and discipline

The only thing more important than setting yourself and your children up for financial success is being able to navigate it. Having money, holding onto it, and growing it requires knowing how to make the good financial choices that will lead there.

Investing early gives your teen plenty of time to acquire the financial literacy that will help them make the most of their investment. They’ll learn about terms and numbers and financial concepts that will serve them well throughout their adult years, no matter the path they take.

Furthermore, managing money earlier on will give your teen a sense of responsibility. They’ll be able to see where their money goes, what it does, and what it can do. Your teen’s participation in the crypto market in particular will make them a part of a larger community of other like-minded and responsible young people who are excited about their futures. Talk about good influences!

The bottom line

Teen investing is a good idea for many reasons from a parent’s perspective. From a teen’s perspective, though, investing in crypto can be a fun and exciting venture that allows them to connect to something big while working towards a financially sound future. And that’s something every parent can get behind.

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