Teenager investing in the stock market through financial app.
What do all parents have in common? We want the best for our kids. We want our kids to grow up to be independent, healthy adults who can achieve their dreams and live a full life. While money isn’t everything, the ability to manage our money is an important piece of living a healthy life. Our kids ability to manage money will affect every step they take in their adult lives, including getting a job, managing their careers, renting an apartment, buying a home and having a family.
A necessary aspect of managing money is how to earn and grow your money. Teenagers today have an opportunity that most of us never had – the ability to invest in the stock market at an early age and earn compound interest. Most adults were not taught the basics of investing as a teenager, and/or didn’t have access to investing platforms. This means investing may seem too risky, or it could be intimidating to adults. However, if done the right way, investing early can empower teens to create the life they envision.
The ‘right way’, starts with financial education, according to Eddie Behringer, Co-Founder and CEO of Copper Banking, a teen focused banking and financial education platform. Copper was founded with the mission to create the first financially literate generation, and recently launched Copper Investing, the first-ever teen-and-kid-centric Registered Investment Advisor (RIA). Copper research shows that teenagers want to learn about finance and are eager to start investing, but because finance is not taught at schools, most teens don’t understand finance.
– 74%: teens who don’t feel confident about their financial education
– 48%: score on a financial literacy exam given to high school seniors
– 32% of teens can’t tell the difference between a credit and a debit card
– 27%: youth who know what inflation is and can do simple interest rate calculation
“With inflation on the rise, teens need to go beyond saving—they need to learn about growing wealth,” Behringer says. “One of the biggest opportunities for teen wealth-building is time in the market and willingness to take risk. Our research shows teens are eager to get started and with Copper Investing, we will empower them to become savvy investors from a place of financial education so parents can feel secure, too, knowing their teen’s financial future comes first.”
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