Here's How to Get Your Teen Investing for the Long Haul

Young Americans say they’re eager to build investment experience, with 70 percent of teens aged 13-17 saying they’re “extremely interested in investing” and the sooner the better, according to a new study.

Brian O'Connell

Published: 5/4/2026, 3:33:55 AM EDT

Here's How to Get Your Teen Investing for the Long Haul — Teach them how to stop and think before making any spending decision. (Sonya Anro/Shutterstock)

“Investing has never been more accessible, and we’re seeing people start earlier than ever," said Jonathan Craig, head of retail investing at Charles Schwab, in a statement. "But when investors get started is when education matters most—especially now given the volume of information available, the range of products to evaluate, and the increasingly blurred boundary between investing and gambling,"

On the downside, the study noted only 14 percent of teens surveyed knew “a lot” about investing and the financial markets. “Their top concerns about getting started include losing money because of a bad investment (59 percent), not knowing what to do when investing (42 percent), and feeling stress over how their investments might perform (41 percent),” the report added.

Getting Your Teens On Track to Invest

The good news is that the Schwab study assessed American teenagers as ready and willing to invest, even though they are unclear about the path to getting to a good portfolio management. These tips can change that equation and get your teen plugged into the stock market.

Take It Slow

Financial advisors recommend a methodical approach as the most reliable way for teens to start investing.

“The best way to invest is through a long-term strategy, not one where the objective is to win fast,” Peter Reagan, financial market strategist at the precious metals IRA company Birch Gold Group, told NTD.

The best thing for them to do is to be consistent and spread their investments to minimize risk. Reagan said, “Don’t fall into the trap of trying to make money through emotional reactions, such as buying when the market goes up and selling when it falls. Investing is more of a game of timing and patience."

Get the Timing Right

Demonstrating the growth power of compound interest is also a big priority for teen investors and their parents.

“When it comes to compounding, there’s generally no greater asset than time,” Brian Finkelstein, chairman at Broad Financial, an IRA financial services firm, told NTD. “No matter how small the investment amount, having the time to stretch and multiply within an investing tool can typically transform modest contributions to significant chunks of change.”

Additionally, another benefit of having your teen invest in the stock market can improve their financial literacy and inspire them to continue digging deeper. “Teenagers can and should develop an understanding of factors that some adults have yet to get a grasp on, like market cycles, investment risk, inflation, and the virtue of patience.”

Teach Patience

Like any major lifetime endeavor, the future is unpredictable, and it’s nearly impossible to accurately guess what stocks will perform outstandingly 100 percent of the time.

“Rather than seeking constant successes, investing can teach teenagers that investing in Wall Street is often accompanied by ever-changing tides,” Finkelstein noted.

“A momentary dip doesn’t necessarily equate to failure, but instead, a period of reflection for reallocation or a pivot in strategy. These fluctuations can also motivate teenagers to explore portfolio diversification, which is considered crucial for maintaining an ideal modern-day investment spread," Finkelstein added.

Take a Game Approach

One of the best ways to get teens interested in investing is to skip the lectures and let them learn by buying and selling stocks and funds.

“There are many free online games and simulations that mimic hands-on experiences, which tend to stick with young people far more than reading an article and answering multiple choice questions,” Yanely Espinal, director of educational outreach at Next Gen Personal Finance Games, told NTD. “That experience at simulate market crashes and rallies are especially valuable because they let teens experience the emotional side of investing in a safe environment, helping them recognize impulses like panic selling before real money is ever on the line.”

Espinal advises using free resources like Prudential Financial's "Outsmart the Market" and the NGPF.org arcade game "STAX" other free stock market simulators are good places to start.

“The key is that teens respond best when learning feels like play, and the more you can turn investing into a memorable experience rather than a homework assignment or chore, the more likely it is to spark a genuine, lasting interest,” Espinal said.

“The competitive element helps too, because when teens can compare results on a leaderboard or replay to beat their own score, they naturally stay engaged without anyone having to convince them the topic matters."

Focus on the Fundamentals

Espinal advises sticking to the underlying basics that support good investment management when working with teenage investors.

“Activities and tasks could focus on exploring low-cost index funds and ETFs via fund fact sheets, evaluate how diversified the funds are, compare expense ratios of various funds to determine which one are lowest in costs and fees, and more,” she said.“Those lessons should include diversification and spreading your money across many different companies and sectors to help manage risk.”

Moving forward, it's important that both parents and financial industry professionals should help teens understand the difference between investing and gambling, as some popular stock market games teach short-term speculation rather than long-term wealth building skills. “The real lesson is that patience and consistency over decades matter far more than chasing exciting trades over days or weeks,” Espinal noted.

Also give teens plenty of exposure to account types such as Roth IRAs, traditional IRAs, 401(k)s, and pensions, so that when they land their first job and get handed a stack of enrollment paperwork, they're prepared. “That way, they’re not seeing those items and terms for the first time,” Espinal added.

The views and opinions expressed are those of the interviewees. They are for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.