At 3, he wanted his mom to explain how a debit card worked at the grocery store, and at 10, he asked his parents to help him start investing in the stock market.
Yet, numerous studies show there's a lack of financial understanding among teenagers even though they control billions of dollars in spending each year, according to research from Carnegie Mellon University in Pittsburgh.A recent Wells Fargo study of 318 teenagers between 13 and 17 found that nearly half gave themselves a"D" or"F" grade when it came to investment knowledge.
Samalis said while Fidelity gives teens broader control than some competitors by letting the kids control the account and the ability to make trades, Fidelity won't let teens engage in short selling or making trades on penny stocks or options, which are considered risky. “My father came to America with no money and had to learn about investing the hard way when he was young,” says Bhat. “He’s been a big influence.”
“If you don't know what you’re doing, it's very easy to lose money,” says Bhat. “If it sounds too good to be true, it probably is.”While Fidelity puts restrictions on the kinds of trades that teenagers can do, Wells Fargo, E-Trade and Stockpile only allow custodial investment accounts for those under 18.
"He can do it when he's on his own," Gray said."When you are in the custodial seat, you make help them make the decisions." A meme stock is tied to a publicly traded company that has benefited or been hurt by investors who use social media to drive interest in the company's shares.Meanwhile, Stockpile has found a different niche in the teen investing world by allowing gift cards to be given to children to start trading and by allowing the sale of fractional shares of companies.
Fielder said gamification psychologically encourages people to keep engaging in trading even if they are losing money. He believes options, which gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date, should be off limits for teens because of their risky nature.
Yee said financial literacy is the key to having a strong economy, yet most students have a long way to go, according to several studies. Consider:
I think it's time to do something new . Just for technically minded teenagers. Clothing of people of science))
Is it just me or that boy’s face look superimposed on his head?
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